Apple iPhone price increase ‘inevitable’: report

The U.S. tech giant raised prices across almost every major product category two months ago, with affected Macs and iPads becoming about 23% more expensive on average, while iPhone prices remained unchanged.

However, Bloomberg reporter Mark Gurman said in an Aug. 23 report that an iPhone price increase now appears unavoidable. "With the same memory and silicon shortages weighing on the iPhone, an increase there remains inevitable," he said.

Samsung and Google have recently raised prices on their latest smartphones by about $100. A similar increase by Apple would put the upcoming iPhone 18 Pro at $1,199, about 9% above the 17 Pro's $1,099 starting price.

Given the severity of the memory shortage, however, an increase of that size would still require Apple to absorb some of the additional costs itself, Gurman said.

Potential designs of the iPhone 18. Photo from X

Apple could have room to raise prices further because of the iPhone's loyal customer base, while a new upgrade subscription program could help soften the impact by allowing consumers to spread costs through monthly payments, according to the report.

Tech analyst Paolo Pescatore told tech site CNET that Apple's large installed base, tightly integrated ecosystem and widespread use of trade-ins and financing give it considerable pricing power, making customers more likely to keep their existing iPhones longer than switch brands.

However, he said higher prices would also raise consumer expectations, requiring Apple to deliver meaningful improvements in areas such as AI, cameras, battery life and new form factors to persuade users to upgrade.

Apple is expected to unveil the 18 Pro and 18 Pro Max, alongside its first foldable iPhone next month. The standard 18, however, is reportedly not expected until the first half of 2027, breaking with Apple's practice in recent years of launching its main flagship models together in the fall.

The delayed launch would leave the standard 17 as Apple's mainstream model for several additional months, potentially giving the company more room to adjust pricing before the broader 18 lineup arrives, according to MacRumors.