A $100 price hike may be all it takes to scare off iPhone buyers

A woman holds a burgundy Apple iPhone 18 Pro during Paris Fashion Week on October 2, 2026. Moritz Scholz/Getty Images


Apple told some suppliers to cut production of components for the iPhone 18 Pro and iPhone 18 Pro Max, according to a new Nikkei Asia report, raising fresh questions about how much more consumers are willing to pay for premium smartphones as memory-chip costs soar.

The publication reported that Apple’s October component orders for the two models are at least 15% below what the company originally requested. 

Demand has been softer than expected from late August into October, according to Nikkei, and Apple has grown more cautious about shipments since early September.

Price may be one factor. The iPhone 18 Pro starts at $1,199 and the iPhone 18 Pro Max at $1,299—each $100 more than the iPhone 17 Pro models they replaced.

The increases come amid a global memory-chip shortage fueled by the AI boom. Tech giants racing to build AI data centers are gobbling up a growing share of memory supply, leaving less for makers of phones, laptops, and other consumer electronics.

Those costs are rippling through the broader economy. The Consumer Price Index for software and accessories and the Producer Price Index for storage devices have both risen 23% since the end of 2024, while the import price index for computers, peripherals, and parts has climbed 37%, according to J.P. Morgan economist Abiel Reinhart.

Smartphones are feeling the squeeze, too. In August, IDC forecast that global shipments would fall 16.7% in 2026 to just over 1 billion units, the steepest annual decline on record. IDC also expects the average selling price of a smartphone to rise 27.6% to $581 as manufacturers pass higher costs on to consumers.

Apple’s launch calendar may be another factor. This fall, the company introduced only premium models: the iPhone 18 Pro, the iPhone 18 Pro Max, and its first foldable, the $2,000 iPhone Duo. It held back the standard iPhone 18, which is expected to arrive in spring 2027 alongside the lower-cost iPhone 18e and a second-generation iPhone Air. —Fernanda Tronco