iPhone 18 Pro price hike higher than expected

A perfect storm of rising component costs is the main reason behind this significant price hike. Apart from record-high prices for memory chips, Apple is also facing higher manufacturing costs for chips, and more expensive camera hardware.

Pu believes such a substantial price increase could introduce “demand uncertainty”, particularly in markets where consumers are already holding onto their smartphones for longer. That said, Apple’s Pro models have historically catered to a more premium customer base, whose purchasing decisions tend to be less sensitive to price increases.

The warning comes after Apple recently raised prices across several product categories, including the Mac, iPad and other devices. The company acknowledged that it had absorbed higher component costs for as long as possible before concluding that the situation had become unsustainable.

The cost pressures are unlikely to ease anytime soon. Industry analysts expect the global memory chip shortage to persist until 2030, with some forecasts suggesting Apple’s memory costs alone could increase fourfold next year.

TSMC, Apple’s primary chip manufacturing partner, is reportedly planning another round of price increases of up to 10% in 2027. Meanwhile, the upgraded camera system rumoured for the iPhone 18 Pro is said to cost Apple up to 50% more than the current hardware, adding yet another layer of cost to the flagship devices.

Source: Jeff Pu via MacRumors