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Apple likely to keep starting price for iPhone 18 flat – Ming-Chi Kuo

MacDailyNews

Jan 27

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iPhone 17 features the Center Stage front camera, a fantastic 48MP Dual Fusion camera system, a bigger and brighter 6.3-inch display with ProMotion, and great all-day battery life. — iPhone 17

Apple’s current strategy for the second-half 2026 iPhone 18 lineup prioritizes avoiding significant price increases wherever possible. The company aims to at least hold the starting price steady with the previous generation, which supports stronger marketing appeal and helps maintain consumer demand amid rising component costs (such as memory).

This approach aligns with recent analyst insights, including from Ming-Chi Kuo, indicating Apple intends to absorb some cost pressures to keep base model pricing flat, even as higher-storage or premium variants may see selective adjustments.

Ming-Chi Kuo via X:
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A few quick thoughts on Apple/iPhone memory price hikes:
1. The 1Q26 LPDDR price hikes mentioned in the news are pretty close to what I’ve heard. NAND flash increases, however, are a bit lower.
2. iPhone memory pricing is now negotiated quarterly instead of every six months, so expect another hike in 2Q26. Right now, the 2Q26 QoQ increase looks similar to 1Q26.
3. For most non-AI brands, even if you’re willing to pay up, there’s no guarantee you’ll get the supply. The fact that Apple can lock in a deal like this shows just how much leverage they have.
4. Higher memory costs will hit iPhone gross margins. But Apple’s playbook is clear: use the market chaos to their advantage — secure the chips, absorb the costs, and grab more market share. They’ll make it back later on the services side.
5. The cost pressure from memory could be a hot topic for investors and analysts at Apple’s earnings call this week. What Apple says could actually shake up other industries’ stocks more than Apple’s own or its suppliers’.
6. Apple’s current plan for 2H26 new iPhone 18 models is to avoid raising prices as much as possible — at least keep the starting price flat, which is helpful for marketing.
7. Apple has realized that it’s not just memory and T-glass — other components could also run short as the AI server boom continues to squeeze the rest of the supply chain.

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MacDailyNews Note: Kuo links to a TrendForce article which you can read here.

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