Apple usually sticks to predictable iPhone pricing. With the iPhone 18 lineup, many expected that pattern to break. Component costs are rising, memory prices are climbing, and chip production is getting more expensive. Even so, new analysis suggests Apple will try hard to avoid passing those costs to buyers.
In a new post, Apple supply chain analyst Ming-Chi Kuo said Apple plans to keep iPhone 18 prices steady, at least at the starting level. He wrote that Apple wants to “avoid raising prices as much as possible” and aims to “keep the starting price flat,” which he sees as important for marketing.
That stance matters because several pressures are hitting Apple at once. Memory prices are rising due to DRAM shortages expected in 2026. Apple negotiates memory contracts quarterly, and increases are likely in the second quarter of 2026. Estimates suggest memory costs are already up 10 to 25 percent compared to last year.
At the same time, Apple faces higher chip costs. The upcoming A20 chip costs more to produce because foundries are prioritizing GPU and AI-related demand. TSMC, Apple’s main chip partner, is dealing with limited capacity as AI customers flood in. To secure enough supply, Apple has to pay more.
Kuo believes Apple will absorb much of this pressure. He says Apple plans to “secure the chips, absorb the costs, and grab more market share.” He also notes that Apple can lock in supply deals that many rivals cannot, even if they are willing to pay higher prices.
This strategy hurts short-term iPhone margins, but Apple sees a longer game. Kuo expects the company to “make it back later on the services side,” where margins are stronger.
Apple has followed this playbook before. The base iPhone 17 kept its starting price, even as some Pro models became more expensive due to higher storage tiers.
A lot can change before launch, but for now, expectations are clear. Apple wants the iPhone 18 to feel familiar at checkout, even if it costs more behind the scenes.
