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By Thomas Westerholm
Life & Trends Reporter
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Apple will hold the line on pricing for the iPhone 18 despite rising memory costs, a decision that could help the tech giant strengthen its grip on the smartphone market while absorbing near-term margin pressure.
According to longtime Apple analyst Ming-Chi Kuo, Apple plans to maintain the starting price of the iPhone 18 models, which includes the base and Pro versions, when they begin rolling out in late 2026.
Kuo said in a post on X, formerly Twitter, that, "Apple has realized that it’s not just memory and T-glass—other components could also run short as the artificial intelligence (AI) server boom continues to squeeze the rest of the supply chain."
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The move comes as LPDDR and NAND memory costs have surged by 10 to 25 percent over the past year, driven largely by demand from AI data centers.
“Apple’s playbook is clear: use the market chaos to their advantage—secure the chips, absorb the costs and grab more market share,” Kuo said in the post on X.
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Why it Matters
Most of the smartphone industry is grappling with memory shortages and cost spikes that threaten to raise prices across the board.
By keeping prices steady—particularly for the base iPhone 18 model, which is expected to retain the $799 starting point—Apple appears to be aiming to stand out among competitors who may not have the resources to follow suit.
What to Know
According to TheStreet, the iPhone 18 release cycle may be split into two phases.
The Pro and Pro Max models, including what may be Apple’s first foldable iPhone, are expected in fall 2026, with a starting price between $2,000 and $2,500.
The standard iPhone 18 and a new “iPhone 18e” mid-range model are likely to launch in spring 2027.
IDC forecasts Apple will ship nearly 247 million iPhones in 2025, a 6 percent year-over-year increase, buoyed by demand in China and strong interest in premium models.
What People Are Saying
On Reddit's r/apple forum, contributors had a number of theories behind the pricing.
"Knowing Apple, it wouldn’t surprise me if they saw the writing on the wall and locked in a big order on RAM before prices started to rise," one person speculated.
"Gross margins are probably high enough that they can absorb the additional costs pretty easily, putting further pressure on competitors," a fellow pundit suggested.
"Tim Cook built his entire career on supply chain," an individual pointed out, adding, "Apple can weather a storm better than any other tech company out there."
However, one commentator was encouraged: "I can't believe we live in a universe where Apple has realistic pricing on memory."
What’s Next
Apple is scheduled to report earnings for the first fiscal quarter of 2026 on January 30.
Apple’s services revenue, which continues to grow, is likely to be a key factor in offsetting any margin loss from hardware.
Newsweek has reached out to Apple for comment via email.
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