Is Apple poised to raise iPhone prices?

Leaked reports indicate that US tech giant Apple is preparing to raise the prices of its iPhone handsets with the anticipated launch of the 18th generation next September, a move that follows competitors Samsung and Google. This comes as the company faces mounting pressure on profit margins due to sharp increases in the costs of memory chips and electronic components. The decision follows months of price hikes for most of Apple’s other products, including Mac and iPad devices, with average increases exceeding 23 percent, while Apple has kept iPhone prices unchanged so far.

In this context, Russ Gherber, CEO of Gerber Kawasaki Financial Advisory, advised consumers to purchase the iPhone 17 before the anticipated price increase, noting that current sales remain strong despite higher prices across the rest of Apple’s lineup. Gherber wrote in a post on the X platform, “At the Apple Store, they told me sales are as good as ever, even with higher prices. The current price of the iPhone 17 has not yet increased, but it will rise in September with the new models... So, if you are looking for a new iPhone 17, now is a good time to buy.”

The drivers behind the expected increase stem from several interrelated factors, which can be summarized as follows:

• Rising component costs, particularly DRAM memory chips. Analysis by TrendForce indicates that the raw material cost for a 256-gigabyte iPhone 18 Pro may rise by approximately 38 percent compared to the current model, with a significant portion of this increase attributed to memory costs.

• Following competitors’ moves, as both Samsung and Google have raised the prices of their flagship phones by about $100. Apple is currently considering mimicking this step to maintain its competitive position in the market.

Initial estimates suggest that Apple may raise the price of the iPhone 18 Pro to $1,199, an increase of $100 from the current price of $1,099, representing a rise of approximately 9 percent. Analysts view this increase as “relatively modest” given the severity of the memory crisis, indicating that Apple is choosing to absorb part of the additional costs itself rather than passing them entirely on to consumers. This approach reflects the company’s desire to avoid what it has described as a “price shock” that could lead customers to delay upgrades or switch to competitors.

In a related development, analyst Gene Munster of Deepwater Asset Management noted that Apple might raise prices by about $125, or roughly 15 percent. However, other reports have mentioned increases that could reach $250 or $300 for higher-end models, reflecting a climate of anticipation and uncertainty regarding the final magnitude of the price hike.

Market observers believe Apple is walking a fine line between maintaining customer loyalty and protecting profit margins, as it faces unprecedented supply chain pressures. With the official launch of the iPhone 18 approaching in September, questions remain open regarding the ultimate extent of the price increase and the readiness of consumers to pay more for their preferred handsets, a scenario that reflects broader shifts in the high-end smartphone industry.