Apple's upcoming iPhone 18 lineup could cost at least $100 more than last year's models as rising memory-chip prices driven by the artificial intelligence boom push up costs across the consumer electronics industry, according to analyst estimates, reported Washington Post.
The new iPhones are expected to be unveiled next week, with some analysts forecasting even larger price increases for Apple's premium Pro and Pro Max models.
IDC senior research director Nabila Popal expects the higher-end iPhones to cost around $200 more than their 2025 versions, while other analysts have projected increases of about $100.
AI Boom Drives Up Memory Chip Costs
The pressure on smartphone prices comes as technology companies invest heavily in artificial intelligence data centres, sharply increasing demand for memory chips. The cost of some memory components has risen roughly fourfold over the past year, contributing to shortages and higher prices for smartphones and other consumer electronics.
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The increase in component costs is affecting a wider range of products, including computers, gaming consoles and smart-home devices. Morgan Stanley has described the phenomenon as "chipflation".
Wayne Lam, an analyst at TechInsights specialising in consumer electronics costs, said smartphone buyers could face further price increases in the coming years as component costs remain elevated.
Apple Already Raised Prices On Other Devices
Apple has already raised prices for several products this year. In June, the company increased prices by as much as $500 on select Macs, iPads and HomePod speakers.
Tim Cook, who recently stepped down as Apple's CEO, described the surge in memory-chip costs in July as a "100-year flood".
Analysts now expect those pressures to extend to the iPhone lineup. Popal and other analysts have also said older iPhone models may not receive their usual price cuts after the new devices are launched.
Instead, prices for some older models could remain unchanged or increase by as much as $100, according to analyst estimates.
Focus Shifts To Higher-Priced iPhones
Apple is also expected to focus its upcoming launch on higher-priced devices. Reports and analyst estimates suggest the company may not introduce a new entry-level iPhone this year.
That could leave buyers choosing from premium iPhone 18 models, including the Pro and Pro Max, as well as Apple's rumoured first foldable iPhone, which is expected to cost $2,000 or more.
Analysts expect the entry-level iPhone to arrive early next year, potentially at a higher starting price.
Apple did not respond to a request for comment.
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Higher Prices Could Still Pressure Margins
Higher retail prices may still not fully offset Apple's rising component costs. Analysts have said a $100 increase may be insufficient to cover the higher prices the company is paying for chips and other parts, potentially putting pressure on its margins.
The higher prices could also affect consumer demand.
AT&T, T-Mobile and Verizon executives have indicated that they do not expect to increase promotional discounts to offset the higher cost of new iPhones. AT&T CEO John Stankey has warned that demand could weaken as device prices rise.
Consumers Hold On To Older Devices
There are already signs that consumers are holding on to older devices for longer. Repair businesses have reported that more customers are choosing to fix smartphones and other electronics rather than replace them.
Memory Costs May Stay High For Years
Memory-chip prices could remain elevated for years, according to some industry executives, with forecasts suggesting the pressure may continue through 2030.
That could mean higher smartphone prices are not a temporary consequence of the AI boom but part of a broader shift in the cost of consumer technology.
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