While Android manufacturers are raising prices en masse due to rising memory chip costs, Apple is said to be taking the exact opposite approach with the iPhone 18 Pro – at least with the base models.
The global memory chip shortage is driving up smartphone prices across the industry. Several Android manufacturers have already raised prices on their models, and analysts even expect the entire market to shrink this year because affordable devices are simply no longer economically viable to produce. Amidst this tense situation, a remarkable report has now emerged from Apple.
What analyst Jeff Pu predicts
In a recent research note, analyst Jeff Pu paints a picture that clearly distinguishes Apple's strategy from its competitors. He expects Apple to pursue an "aggressive pricing strategy" for the iPhone 18 Pro and iPhone 18 Pro Max – but with one important caveat. This aggressive pricing is expected to focus on the base models, meaning the entry-level configurations with the smallest storage capacities.
Specifically, this means that Apple apparently plans to keep the starting prices of the iPhone 18 Pro ($1,099) and the iPhone 18 Pro Max ($1,199) stable compared to their predecessors. However, price adjustments for the higher storage capacities could be upwards – a model that protects margins while simultaneously freezing the emotionally important entry-level price.
Kuo had already confirmed the line previously
Pu's assessment is not alone. Ming-Chi Kuo, one of the most renowned Apple analysts, had previously reported that Apple plans to keep the entry-level prices of the Pro models at last year's level. Now that two independent analysts agree on this assessment, the picture becomes more realistic, suggesting a viable strategy.
The reason is obvious: Apple knows that the perceived starting price affects all storage options. Anyone reading "iPhone 18 Pro starting at $1,099" compares that figure to the Android competition – not the more expensive 512GB or 1TB versions. A stable starting price is therefore a selling point, while an increased starting price immediately makes headlines.
Why this strategy works
Apple's current market position plays into the strategy's hands. The company gained market share against Android last quarter, and Tim Cook described in unusual detail during the earnings call why the iPhone 17 is selling so well. An aggressive pricing strategy for the iPhone 18 Pro would further fuel this trend – especially if Android manufacturers are simultaneously forced to raise their prices.
Furthermore, Apple can simply afford this price stability. The company has by far the best profit margin in the industry and can temporarily absorb higher component costs, whereas competitors have to pass these costs directly on to the end customer. The resulting strategic gap is precisely the one that Apple apparently intends to exploit.
What happens at higher storage levels
The most significant impact of the alleged pricing strategy is likely to be seen in the mix of sold configurations. Those opting for larger storage capacities on the iPhone 18 Pro will probably see noticeable price increases. Apple has used similar mechanisms in the past – for example, with the Mac mini, where the cheapest 256GB model was completely removed from the lineup a few days ago. It's also conceivable that Apple will leave the entry-level storage options unchanged for the iPhones, but recalibrate higher capacities as "Premium" models.
For buyers in Germany, this means: Anyone planning to get the largest possible storage capacity for a new iPhone 18 Pro should expect a significant price increase at launch this fall. Those satisfied with the entry-level configuration, however, will likely find the price surprisingly close to last year's model.
iPhone Ultra as a premium counterpart
The reported pricing strategy for the Pro models makes even more sense when considering Apple's entire fall lineup. In addition to the iPhone 18 and iPhone 18 Pro, the iPhone Ultra is also expected for the first time this fall – Apple's new flagship model, which will most likely launch with a significantly higher price tag. This very structure allows Apple to keep the Pro models priced stable and generate the profit margin instead through the Ultra segment.
The strategy would thus be a classic Apple move: defend the market at the bottom, tap into the market at the top, and in between create a selling point with a stable Pro price that prevails against every Android headline about price increases.
Apple's pricing strategy for the fall is taking shape
Should Pu's prediction prove correct, Apple would have remarkably resolved the most difficult balancing act of the current smartphone season. The memory chip crisis would thus become a strategic opportunity to further position the iPhone against Android – without joining the price spiral currently affecting the rest of the industry. Further details from the supply chains are expected before the official unveiling in the fall, which should gradually complete the picture. You can find all the expectations gathered so far for Apple's next flagship model in our overview of the iPhone 18 Pro. (Image: Shutterstock / Stockinq)
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