iPhone Prices Are Going Up—But the Sky Isn’t Falling
The latest iPhone price increase debate centers on Apple’s decision to pass rising memory and storage costs to customers while trying to keep the next generation’s price jump smaller than many analysts predicted. Apple CEO Tim Cook has admitted that the higher cost and scarcity of memory and storage is something the company can no longer absorb. He has stated that future price increases are likely as Apple faces rising costs driven by shortages of DRAM and NAND components. In his words, “Unfortunately price increases are unavoidable,” and he added that Apple has been trying to shield customers from these increases but the situation has become unsustainable. For customers, the headline is simple: your next iPhone is going to be more expensive, and Apple is being unusually upfront about it.
From Absorbing Costs to Passing Them On
Tim Cook’s pricing strategy has shifted from quiet absorption of cost pressures to open signaling that the iPhone price increase is now unavoidable. Previously, Apple surprised observers when iPhone 17 prices stayed basically the same as the iPhone 16, even after predictions of a hike linked to tariffs. That restraint is over. Cook now says Apple can no longer absorb higher memory and storage costs, and those increases will be passed on to customers. According to one report, “Apple CEO Tim Cook has indicated that future price increases are likely as the company continues to face rising costs driven by shortages of memory and storage components such as DRAM and NAND”. This is Apple resetting expectations: it wants users to understand that component economics, not opportunistic greed, are driving the next round of price changes.
How Much More Will the iPhone 18 Cost?
Industry forecasts around iPhone 18 cost have swung from alarming to cautiously hopeful. Some analysts have suggested price rises could be as high as USD 300 (approx. RM1,380). With the iPhone 17 Pro starting at AUD 1,999 and the iPhone 17 Pro Max at AUD 2,199, projections based on that extreme scenario imply the iPhone 18 Pro could start at AUD 2,499 and the iPhone 18 Pro Max at AUD 2,699. However, a more recent analyst report points to a far smaller jump, indicating Apple may raise iPhone 18 series prices by around USD 50 (approx. RM230), a more modest increase than earlier forecasts. While the exact pricing remains unknown, the latest estimates suggest the iPhone 18 lineup may see a more moderate increase than initially expected.
Memory Storage Costs and Scarcity: The Real Villain
The real driver behind the coming iPhone price increase is not cosmetic redesigns but memory and component scarcity. Greater demand for storage chips and memory has pushed up costs, with AI companies taking much of the supply to build data centres. This has made DRAM and NAND more expensive and turned memory pricing into one of the biggest challenges for smartphone makers. Tim Cook has acknowledged these shortages and rising costs as a key reason Apple can no longer hold the line on pricing. Memory makers are increasing production but are prioritising server chips for enterprise customers, leaving demand for consumer device chips hard to meet. In this environment, Apple faces a choice: shrink margins sharply or pass some of these memory storage costs to buyers—and Cook has made clear which way the company is leaning.
Apple’s Balancing Act: Profit, Pricing and Customer Trust
Despite the pressure, Apple appears intent on keeping the iPhone 18 cost increase as controlled as possible. A report suggests the price rise may be closer to USD 50 (approx. RM230) across the iPhone 18 series, not the steep USD 200–300 (approx. RM920–RM1,380) initially feared. One reason is strategy: Apple could offset rising production costs by expanding the use of its in-house C-series modem chips, reducing reliance on external suppliers in future models. At the same time, Apple is preparing users for broader price moves beyond phones, with indications that iPads and Macs may also go up later this year. In effect, Apple is walking a tightrope—protecting margins without alienating buyers whose budgets are already stretched. The message to consumers is clear: expect to pay more, but not at any price.
