The next iPhone generation could be expensive – literally. Tim Cook has already confirmed that Apple is raising prices due to skyrocketing component costs. A new estimate now quantifies just how much buyers will have to dig for the iPhone 18 Pro: $1,399 or more is being discussed.
That the upcoming iPhone generation won't be cheaper is no longer just a rumor. Apple CEO Tim Cook confirmed to the Wall Street Journal that the company will be raising prices on several products due to unprecedented increases in the cost of RAM and flash storage. He didn't specify which devices would be affected or when the price hikes would take effect – more details are expected in September when the new iPhones are released. The extent to which the price increases could impact the flagship model fits into the existing picture surrounding the iPhone 18 Pro, whose technical upgrades already involve more expensive components.
Apple is anticipating higher prices
Apple itself provided the impetus when Tim Cook openly admitted the impending price increases. When asked which devices would become more expensive and when, he gave an evasive answer, stating that they were still working on it. According to him, only the direction is clear: rising chip and memory prices are also affecting Apple, and the company intends to pass on at least some of these additional costs. Apple did not provide a concrete price list – that will be revealed at the next hardware event in the fall.
An estimate from the Wall Street Journal fills this gap. The editors decided to use the still-unannounced iPhone 18 Pro to calculate how much more expensive Apple hardware is likely to become. The result is significant.
The bill behind the $1,399
The estimate is based on internal analyses and pricing data from the research firm TechInsights. According to these sources, the iPhone 18 Pro is expected to start at a minimum price of $1,299, with $1,399 or more considered more likely. Compared to the iPhone 17 Pro, this would represent a premium of approximately $200 to $300 or more.
The logic behind this: According to TechInsights, the gross margin for the iPhone 17 Pro was a respectable 47 percent, based on a starting price of $1,099. To maintain this margin given the increased costs, Apple would theoretically have to charge around $1,371 for the iPhone 18 Pro. Since the company tends to use standardized pricing, a starting price of $1,299 seems more plausible – which would reduce the margin to approximately 44 percent.
The new camera system as an additional price driver
This calculation, however, doesn't yet take all the markups into account. According to analyst Ming-Chi Kuo, a potential new camera system could cost Apple around 50 percent more than in previous models. If this cost is factored in, the starting price of the iPhone 18 Pro could climb to $1,399 or more. The fact that the imaging technology is becoming more expensive aligns with reports that the new camera will cost Apple around 50 percent more. Significant camera improvements are expected for the iPhone 18 Pro anyway – improvements that would come at a price.
What this means for the Pro Max and iPhone Ultra
A higher starting price for the iPhone 18 Pro would mean that prices would continue to rise. If the Pro model starts at $1,299 or $1,399, the iPhone 18 Pro Max would likely be $100 more, as usual – corresponding to the current price difference between the two variants. Larger storage capacities would also be correspondingly more expensive.
An interesting side effect for the top model of the series is that the expected price of around $2,000 for the iPhone Ultra seems less exorbitant in this context, when the regular Pro model is already approaching the $1,300 to $1,400 mark.
The price anchors are shifting
If the estimates are accurate, Apple isn't just raising the price of a single model, but shifting its entire price structure upwards. This has a psychological component: the higher the starting price of the Pro model, the more normal a $2,000 foldable phone seems. The component costs provide a plausible justification – but whether Apple will pass on the full increase or absorb some of it through margins remains to be seen until autumn.
The decision will be made in September
Apple itself will announce binding prices, traditionally at its iPhone event in September. Until then, the circulating figures of $1,299 to $1,399 remain a well-founded estimate, not a fact. According to Cook, the only certainty is that the price is trending upwards – the exact price will be determined in a few months. (Image: Shutterstock / Anonymous Photographer)
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