This assessment was shared by prominent South Korean leaker yeux1122, citing analysis from major global financial institutions, including Citigroup, Bank of America, and J.P. Morgan Research.

Component cost pressures mount

One of the biggest challenges facing Apple lies in escalating memory prices - particularly RAM and NAND flash - key components expected to weigh heavily on the iPhone 18 lineup.

Despite Apple’s highly optimized supply chain and world-class bargaining power, experts believe the current spike in memory costs is simply too large for the company to absorb entirely without affecting pricing.

Cost burden likely to shift to consumers

Forecasts suggest Apple will likely offset some of these costs by raising the prices of higher-storage models in the iPhone 18 series, particularly the Pro and Pro Max variants.

While entry-level models may retain their current price points, devices with larger storage capacities are expected to see incremental price increases based on configuration. That means the more storage you choose, the more you’ll pay - perhaps more than ever before.

This pricing strategy isn't unique to Apple. With memory prices rising industry-wide, other smartphone makers such as Xiaomi and Samsung are also expected to follow suit in their upcoming releases.

The only alternative - absorbing the extra cost to maintain price stability - would directly erode profit margins, something Apple seems cautious about.

Apple is reportedly trying to strike a balance, preserving the price of standard models to cushion consumer reaction and stabilize demand, while adjusting only premium-tier pricing. Still, early market research suggests that overall iPhone shipments next year could decline as buyers grow more price-sensitive.

AI demand driving up memory prices

The surge in memory chip costs is largely attributed to skyrocketing demand from AI companies. Analysts expect this trend to continue for at least another two years, suggesting ongoing pricing pressure across the tech sector.

In fact, Apple’s own Chief Financial Officer, Kevan Parekh, openly acknowledged in November that rising memory prices are pushing up production costs. However, he also stressed that Apple remains well-positioned due to its scale and long-term supply chain strategy.

Will buyers pay more for iPhone 18?

If the current rumor mill is accurate, Apple will release only the iPhone 18 Pro, iPhone 18 Pro Max, and possibly its first foldable phone in September 2026. Other iPhone 18 variants will reportedly launch later, in spring 2027.

This suggests Apple is initially targeting the high-end market - buyers who are more likely to spend big if the value proposition is strong enough.

The iPhone 18 Pro is expected to feature significant technological upgrades, including the A20 Pro chip built on a cutting-edge 2nm process, promising major gains in performance and energy efficiency.

The main camera may introduce a variable aperture system, enabling better control over depth of field and improved low-light photography.

Battery capacity may also see an increase to meet growing user demands, while the front design is rumored to be revamped with a new punch-hole camera layout positioned to the left - offering a modern twist on previous generations.

Apple has also reportedly signed a deal with Google to integrate new AI-powered features into iOS, boosting the intelligence and utility of the iPhone.

These advancements could be enough to convince a portion of Apple’s fanbase to accept higher prices. But other users may opt for lower-storage models, stick with older iPhones, or even skip the iPhone 18 series altogether.

In a time of global economic uncertainty, any sharp price increase will be a crucial test of Apple’s brand strength - and its ability to convince consumers that innovation still justifies the premium.

Hai Phong