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Why Apple Might Refuse to Raise iPhone 18 Price Despite Rising Costs

The Cupertino brand plans a counter strategy which it believes will help the brand capture a major market share amidst price hikes from competitors

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iPhone 17

Image Credit: Beebom Gadgets

Summary

  • Apple analyst Ming Chi Kuo claims Apple will most likely absorb iPhone 18 series component costs.
  • Even though LPDDR costs are rising exponentially for Apple, it plans for a counter market strategy.
  • iPhone 18 series is expected to launch at negligible price hike, helping Apple grab major market share.

The first month of 2026 is almost over and every major smartphone brand has hiked the prices of their newer and older phones. So, it is no surprise that fans are expecting Apple to also launch the iPhone 18 series with a major price jump. However, it looks like the Cupertino brand is planning to surprise everyone with an unexpected move.

Apple might absorb iPhone 18 series costs instead of a price hike

Trusted Apple analyst Ming-Chi Kuo shared a detailed component price breakdown and its impact on Apple via his latest X post. He has revealed that even though LPDDR costs are exponentially rising for Apple, the brand will not let the end customers bear the brunt. It intends to bear the excess cost itself and pass on the benefits to iPhone users.

iPhone 18 price hike reports
Image Credit: X/ @mingchikuo
iPhone 18 price hike reports
Image Credit: X/ @mingchikuo

This comes as both a surprise and relief. Kuo claims that this decision is part of the iPhone maker's counter strategy which aims to capture a wider market share amidst the rising RAM cost chaos. It will essentially translate to almost zero price hike for the iPhone 18 lineup.

Obviously, initially Apple will lose out on a substantial chunk of revenue. However, it is expected to make the amount back later on services like Apple Music, AppleTV and more. Moreover, with Apple switching to TSMC's 2nm Foundry with the Apple A20 processor, initial cost estimates are over 80% compared to the A19 chip found in the current iPhone 17.

Hence, clearly, Apple is not flying above the radar when it comes to rising costs. So, Kuo's take on iPhone 18 price does make it seem like the brand is preparing to burn a lot of money this September. That said, the iPhone 18 launch is still months away and a lot can happen between then. Nonetheless, we urge you to take this revelation with a pinch of salt.

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Source

X/ @mingchikuo

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