- Apple plans to keep iPhone 18 starting prices flat despite rising component costs
- Analyst Ming-Chi Kuo says Apple aims to absorb cost increases to maintain market share
- Higher costs are driven by the new A20 chip and rising memory component prices
The iPhone 18 series is still many months away — expected to arrive in September — but rising component costs have put the spotlight straight on its pricing. Rumours have been circulating for weeks that the iPhone 18's prices may be bumped. However, a recent update from respected Apple analyst Ming-Chi Kuo indicates that buyers may not face as much of a price increase as some had feared, and Apple might absorb much of the component costs.
Apple May Avoid iPhone 18 Price Bump
In a post on X, Kuo said that Apple's current plan for the iPhone 18 lineup is to avoid raising prices as much as possible. The tech major may specifically aim to keep the starting price flat or very close to current levels, which means the entry-level variants may not get a price hike.
“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,” wrote Kuo.
He noted that maintaining a stable entry-level price by absorbing the costs would help Apple “grab more market share.” This despite LPDDR RAM and NAND flash price increases are certain.
Kuo noted that despite brands willing to pay up the higher amounts, supply remains squeezed. Apple's leverage in the industry will allow it to “secure the chips” nonetheless, Kuo added.
What's Driving Higher Component Costs For iPhone 18?
A major factor for the elevated production expenses is the next-generation A20 chip (likely on a 2nm process), which is expected to be significantly more expensive for Apple to produce.
Memory component prices are also rising due to industry-wide shortages, as suppliers prioritise AI server needs over smartphone use. Kuo has pointed out that Apple now negotiates memory pricing quarterly (rather than every six months), with increases anticipated throughout 2026.
While “higher memory costs will hit iPhone gross margins,” Kuo wrote, the company may absorb a substantial portion of the increases in the short term.
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