The iPhone 18 Pro may not be overly expensive, but I would still advise exercising caution.
J.P. Morgan indicates that the anticipated price increase for the iPhone 18 Pro may be less significant than previously feared.
Last week, Tim Cook emphasized that Apple is likely to raise prices on its hardware, including iPhones, as the company struggles to manage increasing costs. The primary factor driving this is the rising prices of memory, particularly RAM and storage, throughout the tech sector.
This has sparked concerns about a substantial price hike for the iPhone 18 Pro. However, new findings from J.P. Morgan suggest a more manageable scenario. A screenshot of the firm's projections shared by Max Weinbach on X indicates that Apple might mitigate some of the memory cost increases by implementing savings in other areas.
According to J.P. Morgan's analysis, the cost of iPhone memory—comprising NAND and DRAM—could escalate from $65 in 2025 to $114 in 2026, and then to $228 in 2027. This escalation coincides with the release cycles of the iPhone 18 Pro in 2026 and the iPhone 19 Pro in 2027. This represents a significant surge, which might explain Apple's difficulty in maintaining flat prices for an extended period.
On a brighter note, Apple may find opportunities to reduce costs elsewhere. J.P. Morgan forecasts that expenses for non-memory components could drop from $449 in 2025 to $426 in 2026, followed by a decrease to $384 in 2027. The report also highlights $15 in projected savings for 2027 from Apple utilizing more in-house components, likely including their 5G modem. Currently, the iPhone 17 Pro uses a Qualcomm modem, but the iPhone 18 Pro is expected to transition to Apple’s C2 modem.
Thus, the report suggests a probable price increase of approximately $50 to $100 for the iPhone 18 Pro compared to existing models, rather than the much larger increases mentioned in earlier reports.
Despite this insight, caution is warranted. This remains an analyst’s projection and not an official pricing strategy from Apple. Previous speculation indicated that the base iPhone 18 Pro could potentially reach $1,399, leaving considerable uncertainty.
Even if J.P. Morgan’s estimates hold true, it does not imply that the iPhone 18 Pro is exempt from a noticeable price increase. Apple has successfully maintained stable prices to date, partly due to their secure memory inventory at the start of 2026 and their capacity to negotiate supply agreements that many competitors cannot match.
However, the dynamics of the RAM and storage market have shifted significantly. Major AI companies are investing heavily to secure memory and storage for their data centers, significantly boosting demand and driving prices upward. If this trend continues, Apple’s ability to absorb these costs may only extend so far. While the report offers some reassurance, it does not serve as a definitive guarantee.
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The iPhone 18 Pro may not be overly expensive, but I would still advise exercising caution.
Increasing costs of RAM and storage continue to pose a challenge for Apple; however, J.P. Morgan suggests that the price hike for the iPhone 18 Pro may be more modest.
