Apple to Keep iPhone 18 Pro Base Prices Unchanged Despite Rising Memory Costs, Analyst Says

Key facts

• Analyst Jeff Pu predicts Apple will use 'aggressive pricing' for iPhone 18 Pro and Pro Max base models.
• Base prices expected to remain at $999 for iPhone 18 Pro and $1,199 for Pro Max.
• Higher storage configurations (512 GB, 1 TB) may see price increases to protect margins.
• Rising memory costs due to AI demand have led some Android manufacturers to raise prices.
• Apple is reportedly working with Samsung as exclusive supplier for OLED panels, possibly featuring polarizer-free technology.
• iPhone 18 series coincides with the 20th anniversary of the original iPhone.
• A foldable iPhone Ultra is speculated, likely with a premium price tag.

Aggressive Pricing Strategy for Base Models

Apple is expected to defy industry trends by keeping the base prices of its upcoming iPhone 18 Pro and Pro Max unchanged, according to analyst Jeff Pu. In a research note, Pu stated that the company will employ an 'aggressive pricing strategy' for the entry-level models, setting the iPhone 18 Pro at $999 and the Pro Max at $1,199. This move comes as rising memory costs, driven by surging AI demand and supply constraints, have forced many Android manufacturers to increase prices on their flagship devices. By maintaining stable entry-level prices, Apple positions itself to potentially gain market share from Android, a trend that has already emerged in early 2025. from analyst Ming-Chi Kuo, who indicated Apple aims to keep entry models at the same price as last year. However, the company may offset rising production costs by increasing prices on higher storage tiers, such as 512 GB and 1 TB configurations.

Rising Component Costs and Market Dynamics

The smartphone industry is grappling with soaring memory costs due to heightened demand for AI-related components, leading to supply constraints. Analysts predict the Android market may shrink overall this year as some budget smartphones are discontinued due to the cost crunch. In this environment, Apple's pricing strategy for the iPhone 18 Pro series is being closely watched. Pu's prediction suggests Apple is willing to absorb some margin pressure on base models to maintain competitiveness. The company may rely on higher-margin storage upgrades and services to sustain profitability. This approach mirrors tactics used in previous years, where Apple kept base prices steady while adjusting pricing for premium configurations.

Display Innovations and Supplier Partnerships

The iPhone 18 Pro Max is rumored to feature significant display advancements, with Samsung reportedly serving as the exclusive supplier for OLED panels. A key innovation could be the introduction of polarizer-free OLED technology, which enhances brightness and energy efficiency. This would deliver a superior viewing experience and improved battery performance. Additionally, there are rumors of a four-sided curved display, a design that could redefine the iPhone's aesthetics and usability. However, questions remain about the durability and production feasibility of such a feature. If successfully implemented, it could set a new standard for premium smartphones, blending elegance with functionality.

20th Anniversary Milestone and Foldable iPhone Ultra Speculation

The iPhone 18 series carries special significance as it marks the 20th anniversary of the original iPhone, raising expectations for bold innovations. Alongside the Pro models, Apple is expected to unveil the iPhone Ultra, its first 'Ultra' model, which will likely command a high price tag. Speculation about a foldable iPhone Ultra has also gained traction, hinting at Apple's potential entry into the foldable market. Such a device would combine portability with expanded screen functionality, but it is likely to be a niche product due to its premium pricing. Whether Apple will unveil it alongside the iPhone 18 series or later remains uncertain.

Outlook: Balancing Affordability and Profitability

Apple's pricing strategy for the iPhone 18 series underscores its understanding of the competitive landscape. By keeping base prices stable, the company appeals to consumers wary of rising costs in other flagship devices. At the same time, premium storage options and potential new models like the foldable iPhone Ultra provide avenues for sustaining profitability. As the launch approaches, the industry will be watching whether Apple can execute this balancing act without alienating its customer base. The company's ability to manage margins while offering innovation will be critical in maintaining its leadership in the premium smartphone market.

The bottom line

• Apple plans to keep iPhone 18 Pro base prices at $999 and Pro Max at $1,199, bucking industry trends of price hikes.
• Higher storage tiers (512 GB, 1 TB) may see price increases to offset rising memory costs.
• The iPhone 18 series marks the 20th anniversary of the original iPhone, fueling expectations for innovative features.
• Display advancements include potential polarizer-free OLED technology and a four-sided curved design, with Samsung as exclusive panel supplier.
• A foldable iPhone Ultra is speculated, likely as a premium niche product.
• Apple's aggressive pricing on base models aims to gain market share from Android amid rising component costs.