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New iPhones are likely coming next month, and so are higher prices. Shoppers should expect hikes of at least $100 on the iPhone 18 Pro and other products launching at Apple’s annual September event, says Mark Gurman of Bloomberg.
The iPhone 18 Pro Max and Apple’s first foldable phone (possibly named the Ultra) — also expected to be unveiled in September — could cost more due to an AI-driven RAM shortage that has sparked a supply crunch for phones, laptops, gaming consoles and other electronic devices.
If Gurman is right, the iPhone 18 Pro would start at around $1,200, up from the $1,100 for the iPhone 17 Pro. which launched last September.
Read more: iPhone 18: Everything We Know About Apple’s Next Handsets
Two months ago, Apple raised prices on select MacBooks, iPads and HomePods, with some devices going up 33%. The iMac went from $1,300 to $1,500, the MacBook Neo went from $600 to $700, and MacBook Pro models each rose by $300. Last week, the tech giant laid off about 200 workers from its Vision Pro and Siri teams, and shut down the Vision Pro gaming group.
A representative for Apple didn’t immediately respond to a request for comment.
Will price hikes affect consumer buying?
If Apple goes $100 higher for its new iPhones, that would match Samsung’s cost hikes for the Galaxy Z Fold 8 and Galaxy Z Flip 8, and Google’s hikes with the Pixel 11 and Pixel 11 Pro.
Gurman said in his report that “Apple has room to go higher.” If so, the company’s new Upgrade program — which allows customers to lease an iPhone, iPad, Mac or Apple Watch at prices starting at $18 a month for an iPhone — could mitigate sticker shock.
But higher iPhone prices aren’t likely to turn off many Apple fans, according to longtime tech analyst Paolo Pescatore.
“Its huge installed base, ecosystem and growing use of trade-ins, financing and monthly payments give it far greater pricing power than most rivals,” Pescatore told CNET. “The bigger risk is not consumers switching away from Apple but rather deciding to keep their existing iPhone for longer.”
But loyalty can only go so far, Pescatore added. Steeper prices need to correlate with bigger advancements.
“Samsung and Google raising prices gives Apple useful cover, but higher prices bring greater expectations,” he said. “Apple needs to show consumers meaningful advances in AI, cameras, battery life and new form factors. Brand loyalty is incredibly strong, but Apple still needs to keep giving users a compelling reason to move up the range.”
RAMageddon’s fault … or not?
Companies and analysts blame higher prices for most tech goods on component shortages and steep price increases for RAM and storage devices like hard drives and SSDs — mainly caused by the buildout boom in AI infrastructure by some of the world’s major tech companies.
Even though Apple has largely stayed on the sidelines as Amazon, Microsoft, Alphabet (Google) and Meta have spent billions on AI investments, the iPhone maker has felt the ripple effects of the worldwide memory chip shortage, which it claims forced it to raise prices this year.
But with a profit margin reportedly at an astounding 27%, Apple would seem more than capable of keeping prices as affordable as possible for its millions of loyal customers.
Ever since being admittedly fascinated by the Cambridge coffee webcam from the 1990s, I've written about VPNs, the NFL, smartphones, living wages, over/unders and everything in between. See full bio
