Apple May Raise iPhone Prices as Memory Costs Climb

It was only two months ago that Apple raised prices on an array of products, citing rising component costs, particularly for memory chips.

Apple could raise iPhone prices as rising memory and component costs put pressure on its profit margins. [Photo: Apple]

iPhones, which account for roughly half of the company's annual revenue, were left untouched, Andrew Nusca reported for Fortune Tech.

That may soon change. Apple is reportedly preparing to raise iPhone prices as higher component costs put pressure on profit margins and competitors such as Google and Samsung raise prices on their latest smartphones.

According to Bloomberg, matching those increases could push the starting price of the iPhone 18 Pro to about $1,199, up roughly 9% from the current $1,099 starting price of the iPhone 17 Pro.

Bloomberg's Mark Gurman said the increase would be relatively modest given the severity of the memory-cost pressures. 

Apple’s new Upgrade program could also help soften the impact. The program allows customers to spread the cost of an iPhone over monthly payments rather than paying the full price upfront.

Meanwhile, Apple is expected to face additional scrutiny over its highly anticipated foldable iPhone.

With reports suggesting a price of $2,000 or more, the device could test how much consumers are willing to pay for a premium form factor.