Apple tends to be fairly consistent with its iPhone pricing, but a variety of reports have indicated that may change with the iPhone 18 line. Analyst Ming-Chi Kuo just shared his expectations, however, and it’s surprisingly good news.
Rising iPhone 18 component costs won’t necessarily lead to higher consumer prices
Apple’s current plan for 2H26 new iPhone 18 models is to avoid raising prices as much as possible—at least keep the starting price flat, which is helpful for marketing.
Kuo’s comments are part of a larger post in which he responds to claims that LPDDR costs are rising significantly for Apple.
There have also been several reports about the A20 chip costing substantially more to produce than usual. This is due to escalating TSMC demand for GPU production to fuel AI growth.
TSMC is facing production constraints as it receives an influx of new customers, leaving Apple to pay higher prices to secure the capacity it needs.
All of this reporting has led many to believe the iPhone 18 line could come with significant price hikes. So Kuo’s more modest expectations are a welcome take.
Based on his years of supply chain analysis closely covering Apple, Kuo believes that the company’s strategy will be to “use the market chaos to their advantage—secure the chips, absorb the costs, and grab more market share.”
Despite whatever impact this might have on gross margins, Kuo believes Apple will “make it back later on the services side.”
A lot can change between now and September, but hopefully Kuo’s expectations prove true and price hikes end up being minimal or nonexistent this year.
What are you expecting from iPhone 18 pricing this fall? Let us know in the comments.
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