Apple iPhone Price Hikes Inevitable: What iPhone 18 Will Cost You

Apple is reportedly preparing iPhone price hikes for the upcoming iPhone 18 series, with the iPhone 18 Pro potentially seeing a $100 increase to $1,199 according to Bloomberg’s Mark Gurman. Writing in his Power On newsletter on August 25, Gurman stated that Apple is “actively discussing” price increases for the new lineup, though the exact figures remain undecided. The move comes as Apple faces surging costs for memory and other components, following similar price increases already applied to Macs and iPads earlier this year. The tech giant is currently weighing its options on the exact increase, though industry analysts suggest a $100 bump is the most likely scenario as Apple balances margin protection against potential customer pushback.

The pressure on Apple to raise prices has been building for months, driven by a perfect storm of supply chain challenges. The ongoing global memory shortage has significantly raised manufacturing costs, with TrendForce reporting that DRAM prices have surged 30% year-over-year and NAND flash costs have jumped 25% in the same period. At the same time, Apple is moving to a more expensive 2nm manufacturing process for the A20 Pro chip in the iPhone 18 Pro. This transition is particularly costly due to the complex EUV lithography requirements and lower initial yield rates—industry estimates suggest yields for 2nm are currently around 60-70% compared to 80-85% for 3nm, significantly driving up per-chip production costs. Apple has already warned investors about pressure on its gross margins this quarter, a signal that the company may not be able to absorb all of these additional costs without passing some on to consumers.

This isn’t the first time Apple has adjusted pricing on its flagship products. The company raised the price of the iPad Air by $150, the MacBook Air by $200, and the Mac Studio by a substantial $500. These previous increases suggest that Apple is comfortable testing the pricing power of its ecosystem. As Gurman points out in his August 25 newsletter, Apple may feel that iPhone users are locked into the iOS ecosystem and that it can raise prices significantly without losing customers. However, a price hike must be carefully calibrated to avoid pushing customers to competitors.

According to Gurman’s reporting, Apple is still deciding exactly how high the prices will go. The company is said to be considering an increase between $100 and $150 for the Pro models. This would place the iPhone 18 Pro price somewhere between $1,199 and $1,249, while the iPhone 18 Pro Max could start at $1,299 or even $1,349. The standard iPhone 18 and 18 Plus are expected to see more modest increases, potentially $50-$100, keeping them more accessible to mainstream buyers. Gurman emphasized in his latest Power On issue that the final decision “hasn’t been locked in yet,” suggesting that Apple is closely monitoring consumer sentiment and competitor reactions before finalizing pricing.

Apple also has to consider competitive pressures when setting its pricing. Both Samsung and Google raised the prices of their new Galaxy and Pixel lineups by approximately $100 each in their latest iterations. The Galaxy S26 Ultra now starts at $1,299, while the Pixel 11 Pro is priced at $1,099. Apple may feel it needs to either match that increase or stay within that general range to avoid being priced out of the market. If Apple were to implement a $150 increase, the iPhone 18 Pro would be priced at $1,249, which is still less than the Galaxy S26 Ultra but $150 more than the Pixel 11 Pro.

Gurman notes that Apple may feel it can implement higher price hikes than its competitors thanks to the company’s Apple Upgrade program. Essentially a leasing model, the program allows users to pay a recurring monthly fee for a device and easily swap it in for an upgrade when a new model comes out. If the iPhone gets more expensive, users who may have previously been priced out after a price hike can instead just opt to lease the device. This financing mechanism effectively masks the impact of a price increase for many consumers, making them less sensitive to the actual full retail price.

With the iPhone 18 series announcement expected on the second Tuesday of September, Apple enthusiasts and potential buyers face a critical decision: purchase the current iPhone 17 models, which may see price drops in the coming weeks, or wait for the new lineup and its likely price hike. Historically, Apple has reduced prices on previous-generation models by $100-$150 when new devices are announced. For example, the iPhone 13 dropped from $799 to $699 after the iPhone 14 launch, a 12.5% reduction. Similarly, the iPhone 14 dropped from $899 to $799 following the iPhone 15 release, an 11% decrease. This pattern suggests current iPhone 17 models could see reductions of 10-15%. However, trade-in values for current iPhones often dip after new models are released, sometimes by 8% or more, as was seen after the iPhone 14 price hike. This means waiting could result in a lower trade-in offer for your current device.

Carrier installment plans add another layer of complexity to the decision. Most US buyers finance through AT&T, T-Mobile, or Verizon, where price hikes are masked by 24- or 36-month payment plans. For instance, a $100 increase adds just $4.17 per month to a 24-month installment or $2.78 per month over 36 months. AT&T’s current 36-month installment plans, which cover the full retail price interest-free, make a $100 price increase nearly invisible on monthly bills. T-Mobile and Verizon offer similar 24- and 36-month options, meaning the effective monthly increase for consumers could be as low as $2.78. This monthly masking effect is significant—at $4.17 per month, Apple could argue consumers are paying less than the cost of a premium coffee subscription for the latest technology. However, consumers should note that the total cost of ownership remains higher, and upgrade fees or trade-in requirements can offset these apparent savings.

For users in international markets, currency exchange rates will further impact the effective price increase. European buyers should expect VAT-adjusted increases—for example, a $100 US increase typically translates to approximately €100-€120 in the EU after accounting for 19-25% VAT and forex rates. In the UK, Apple has historically adjusted prices using the GBP/USD exchange rate plus 20% VAT, meaning a $100 increase could translate to £80-£90. Japanese buyers may see increases of ¥12,000-¥15,000, while Australian customers could face AU$150-170 hikes. Apple has historically priced international products at a premium over US prices to account for these factors, so global customers should expect proportional increases in their local currencies.

Looking at the bigger picture, Apple’s pricing strategy has been gradually shifting upward over the past decade. The original iPhone X launched at $999 in 2017, and the iPhone 11 Pro continued that pricing in 2019. The iPhone 12 Pro saw no price change, remaining at $999, and the iPhone 13 Pro maintained that price in 2021. It was the iPhone 14 Pro that broke the $1,000 barrier in 2022, hitting $1,099, and the iPhone 15 and 16 maintained that price through 2023 and 2024. The iPhone 17 Pro also started at $1,099 in 2025. A move to $1,199 would represent a 20% increase from the $999 base established in 2017, or 9% over the current $1,099. This timeline shows Apple’s measured approach to iPhone cost increase strategy: $999 from 2017-2021, $1,099 from 2022-2025, and now potentially $1,199 from 2026 onward.

The tech giant’s historical approach to pricing shows that iPhone price increases have had mixed effects on unit demand. The iPhone X at $999 was a significant leap from previous $650-$750 price points, yet it sold strongly, moving approximately 77 million units globally. The iPhone 12 mini, however, failed at its $699 price point, selling only 14.5 million units, suggesting that value-conscious consumers are indeed sensitive to pricing when perceived value doesn’t match the cost. This data point likely weighs on Apple’s decision as they balance profitability against market share protection. Geopolitical factors also play a role—potential tariff impacts on Chinese-made components and ongoing semiconductor supply chain diversification efforts have added 5-10% to production costs, according to supply chain analysts.

Another strategic consideration is Apple’s product lineup management. When prices increase on new models, Apple typically discontinues older premium devices and continues selling only the previous generation at reduced prices. For example, when the iPhone 15 launched, Apple discontinued the iPhone 14 Pro but continued selling the iPhone 14 at a lower price point. This strategy pushes customers toward higher-priced tiers by eliminating mid-range options. If Apple follows this pattern, the iPhone 17 Pro could be discontinued entirely after the iPhone 18 launch, leaving only the standard iPhone 17 and lower-cost options. This effectively forces upgraders into the higher-priced iPhone 18 Pro tier, a strategy that maximizes revenue per device but limits options for budget-conscious consumers.

As the September event approaches, all questions about the foldable iPhone Ultra, price increases, and other details will be answered. For now, the evidence points strongly to Apple iPhone price hikes across the board. The only remaining questions are exactly how much and which models will see the biggest adjustments. Gurman’s reporting suggests the final numbers could shift based on how competitors price their fall offerings, making this a dynamic situation.

Beyond the short-term decision of buying now versus later, the bigger question is whether Apple is permanently shifting the price floor for premium smartphones. If the iPhone 18 Pro starts at $1,199, it would suggest that Apple sees $1,200 as the new baseline for its Pro line. This would have implications for the entire smartphone industry, potentially giving Samsung and Google room to raise their prices further while maintaining their value positioning relative to Apple.

Ultimately, the Apple iPhone price hikes appear to be a strategic move that reflects the company’s confidence in its ecosystem lock-in and the relative price insensitivity of its premium customer base. While casual buyers may be priced out, the core Apple enthusiast market is likely to absorb the increase without significant pushback. For those on the fence, the coming weeks offer a narrow window to secure current-generation devices at potentially lower prices before the new models arrive at higher price points.

As the industry watches Apple’s next move, one thing seems clear: the era of $999 flagship iPhones is ending, and the new normal may be $1,199 for the Pro experience. Whether customers will embrace this new price reality remains to be seen, but Apple appears willing to test the limits of its premium positioning.

Frequently Asked Questions About Apple iPhone Price Hikes