Summary Apple is expected to unveil its new iPhone lineup in September, with iPhone 18 Pro likely to start at around $1,200, compared with the $1,100 starting price of the iPhone 17 Pro introduced last year.
CUPERTINO (Web Desk) - Apple may increase the prices of its upcoming iPhone models by at least $100, with the company reportedly preparing to raise prices as it faces higher component costs and a global shortage of memory chips.
According to Bloomberg’s Mark Gurman, Apple is expected to unveil its new iPhone lineup at its annual September event, with the iPhone 18 Pro likely to start at around $1,200, compared with the $1,100 starting price of the iPhone 17 Pro introduced last year.
The iPhone 18 Pro Max and Apple’s first foldable iPhone, which could reportedly carry the Ultra name, may also come with higher price tags.
The expected increases come as the technology industry faces a supply crunch involving RAM and other memory components. The shortage has been linked largely to growing demand from artificial intelligence infrastructure, as major technology companies continue to invest heavily in AI data centres and computing systems.
Apple has already raised prices on other products
Apple has increased prices on several products in recent months. Select MacBook, iPad and HomePod models became more expensive, with some products seeing significant price increases.
The iMac, for example, reportedly increased from $1,300 to $1,500, while the MacBook Neo rose from $600 to $700. Several MacBook Pro models also became $300 more expensive.
Apple has also recently cut around 200 positions across its Vision Pro and Siri teams and reportedly shut down its Vision Pro gaming group.
Apple has not immediately commented on the reported iPhone price increases.
Could higher prices affect iPhone demand?
A $100 increase would put Apple’s expected price adjustments broadly in line with recent increases from rivals Samsung and Google.
Gurman has suggested that Apple could potentially increase prices by even more. The company’s financing and upgrade options, however, could help reduce the impact of higher upfront costs for customers.
Longtime technology analyst Paolo Pescatore said Apple’s large installed user base and strong ecosystem give it considerable pricing power. Trade-ins, financing and monthly payment options could also make higher prices easier for consumers to absorb.
However, Pescatore said the bigger risk may be that consumers choose to keep their existing iPhones for longer rather than switch to competing brands.
He added that higher prices would also raise expectations for Apple’s new devices. Customers would likely expect significant improvements in areas such as artificial intelligence, cameras, battery life and new device designs.
Is the memory shortage driving prices higher?
The global shortage of memory components has become a major concern for technology manufacturers, with rising demand from AI infrastructure putting additional pressure on supplies of RAM and storage components such as SSDs.
Although Apple has invested less aggressively in AI infrastructure than companies such as Amazon, Microsoft, Google and Meta, it has nevertheless been affected by the broader supply pressures.
Apple's strong profit margins could give the company some flexibility in absorbing higher component costs rather than passing the full increase on to consumers. However, if the reported price increases materialise, buyers may have to pay significantly more for Apple’s next-generation iPhones.
