GoKawiilWe know for sure that Apple will increase iPhone prices when the iPhone 18 Pro launches next month. The company exempted existing iPhones when it increased prices across the board to reflect higher memory prices, but that was only ever going to be a temporary reprieve.
However, two sources are now suggesting that the starting price of this year’s Pro models will be $1,399 – and I find it hard to believe even Apple would go that far …
Don’t misunderstand me: the company has very clearly shown us that it really wants to protect its margins, and it isn’t afraid to increase prices dramatically. For example, the base model MacBook Air went up by $200 from $1,099 to $1,299. Even the MacBook Neo, which wowed people precisely because its $599 starting price was so surprising, went up by $100.
But a $300 increase in the starting price of an iPhone Pro would be quite something. That’s a price jump Apple has so far reserved for far more expensive products.
The cheapest product in the lineup to see a $300 increase was the base model MacBook Pro, which went from $1,699 to $1,999. That’s a hefty raise to be sure, at a touch under 18%. But a $300 increase in the price of the iPhone 18 Pro over its predecessor would be a 27% increase.
Again, it’s not impossible. Some of the configuration upgrades to MacBooks have quite literally doubled in price, for example; Apple loves its margins. But Tim Cook did hint during the earnings call that the company isn’t determined to protect them come-what-may.
In terms of our philosophy on dollars or percentages, we look at units, revenue, and margin, and then come to a business judgment as to how to handle that. And so it’s not a mathematical formula that gets us to a specific result or just looking at one dimension of that. We look at all three dimensions and think about it over the long term instead of a 90-day clock.
When it comes to the units part of the equation, I do think that this increase would deter a great many people from upgrading, especially as it looks like next year’s Pro model is going to be a significantly bigger deal.
Of course, the counter-argument would be that the Apple Upgrade program takes some of the sting out of it. People might decide it’s fine to lease the iPhone 18 Pro for one year and then upgrade to the 20th anniversary model next year. But for those who buy their phones outright, such a large increase in the price would be a significant disincentive.
What’s your view? Do you think a $300 increase is realistic, or do you think that a 27% jump would be too much even for Apple to try? Please share your thoughts in the comments.