While market research firm IDC estimated that the starting prices of the iPhone 18 Pro models might be $200 higher than the iPhone 17 Pro models, the latest prediction from an analyst suggests that the price hikes could be even worse.
In a research note with GF Securities today, analyst Jeff Pu said higher costs for the A20 Pro chip, RAM, and storage could result in the iPhone 18 Pro models being up to $300 more expensive than the iPhone 17 Pro models. If so, the iPhone 18 Pro would start at $1,399 in the U.S., and the iPhone 18 Pro Max would start at $1,499.
Last month, Apple raised prices on all Macs and iPads, as well as the Apple TV, HomePod, HomePod mini, and Vision Pro. The increases ranged from $30 for the HomePod mini to up to $1,300 for a high-end Mac Studio configuration.
Apple said it raised prices because of the ongoing memory chip shortage, resulting from companies building out data centers with powerful AI servers. The supply-demand imbalance has led to skyrocketing prices for RAM and SSD storage chips used in a wide range of Apple products, and Apple has now passed those costs on to customers.
Apple's full statement:
The consumer electronics industry is facing an unprecedented challenge. The rapid expansion of AI data centers has created an extraordinary surge in demand for memory and storage. We have never seen a component price increase this much, this quickly. We have shielded our customers from these increases so far, but we have now reached a point where we need to begin raising prices on a number of products, including today's increases for iPad and Mac. We know this is not welcome news, and we are working tirelessly to find solutions.
Apple CEO Tim Cook has stated that price increases were "unavoidable" due to "a hundred-year flood on the memory pricing."
Apple is expected to announce the iPhone 18 Pro models in September.
