Apple may raise iPhone prices amid component cost pressures
Analyst Mark Gurman says Apple is likely to increase iPhone prices by about $100, citing memory and chip supply constraints that have already led to price hikes for other Apple products.
Apple is reportedly preparing to lift iPhone prices as it confronts higher memory and chip costs, Bloomberg analyst Mark Gurman wrote in his latest "Power On" newsletter. The company previously raised prices on most major product lines, with average increases of roughly 23% for Macs and iPads. Gurman noted that the iPhone faces the same supply-chain challenges, making a price rise "inevitable."
Observing recent pricing moves by Samsung and Google, which added about $100 to their newest smartphones, Apple could set the iPhone 18 Pro's starting price at $1,199, a 9% increase over the current iPhone 17 Pro model. Gurman described this as a modest adjustment, suggesting Apple is absorbing part of the added expense.
Apple has warned of pressure on its gross margins this quarter, indicating it is not passing all higher costs onto consumers. While a $100 hike would keep the iPhone within Samsung's price range, Gurman said Apple could still raise prices further, given the larger increases seen on Macs and iPads and the brand's loyal customer base. The company's new Upgrade subscription program may help mitigate the impact by allowing buyers to spread payments over time.