Recent analysis suggests that the pricing for the upcoming iPhone 18 Pro and Pro Max models may remain unchanged, a surprising development given the rising costs of key components. Analyst Jeff Pu has indicated that these flagship devices are likely to be priced similarly to their predecessors, which could provide Apple with a competitive edge in a challenging market.
The anticipated increase in costs for Apple comes from various sources. Reports indicate that the new A20 Pro chip, which utilizes a sophisticated 2nm manufacturing process, is expected to see a price hike. This increase is driven by heightened demand for production capacity at TSMC, a leading semiconductor manufacturer. Additionally, the surge in demand for AI applications has led to a spike in prices for DRAM and storage components.
Despite these pressures, analysts have differing views on how Apple will respond. Ming-Chi Kuo, another respected analyst, has previously suggested that Apple intends to maintain its current pricing structure for the iPhone 18 series. Specifically, he asserts that the base storage options will not see a cost increase compared to the iPhone 17 line.
Following Apple’s recent earnings call, Pu’s firm conducted new supply chain research, which supports Kuo’s assertions. Pu stated that Apple is implementing several cost management strategies aimed at keeping the starting prices of the iPhone 18 Pro and Pro Max “unchanged or at a similar level” to the previous models. This would mean potential starting prices of $1,099 for the iPhone 18 Pro and $1,199 for the Pro Max.
Maintaining these price points could bolster Apple’s position against competitors that may be forced to adjust their pricing strategies in response to component cost increases. Furthermore, this decision could mitigate customer dissatisfaction stemming from the delayed release of the base iPhone 18 model, which is not expected until early next year.
As the launch date approaches, consumer reactions to potential pricing strategies will be closely monitored. The decision to keep prices steady may influence purchasing decisions among potential buyers who are weighing the value of the new features against the cost.
This pricing strategy, if successful, could enhance Apple’s market share and provide a buffer against economic pressures affecting the tech industry. It remains crucial for consumers to stay informed as further developments unfold in the lead-up to the iPhone 18 launch.
