iPhone 18 price leak: Apple may keep costs steady despite rising chip and memory prices

The iPhone 18 may still be months away, but speculation around its price tag has already kicked off. And don’t worry, the latest leak is brings a sign of relief.

Despite mounting production costs and global chip shortages , Apple is reportedly planning to keep iPhone 18 prices close to last year’s levels, a move that could help it retain its grip on price-sensitive markets such as India.

Industry insider Ming-Chi Kuo, known for his accurate Apple forecasts, believes that the Cupertino-based company is unlikely to hike prices significantly when it unveils the new iPhone lineup in the second half of 2026.

iPhone 18 price expectations

According to Kuo, Apple aims to launch the iPhone 18 series at roughly the same prices as the iPhone 17 lineup, which started at $799 in the United States and Rs 82,999 in India. If true, this would make the upcoming flagship one of the few premium smartphones to hold its ground amid an industry-wide trend of price hikes.

It’s not an easy task, though. Apple is juggling rising component costs, particularly for its next-generation A20 processor, which will power the iPhone 18 range. The chip, built by Taiwan Semiconductor Manufacturing Company (TSMC), is expected to be more expensive due to soaring global demand for advanced semiconductors driven by the artificial intelligence (AI) boom.

Memory prices are also climbing. Analysts expect storage components to become 10–25 per cent costlier throughout 2026 as supply chains tighten. That means Apple’s production costs are rising on two crucial fronts — chips and memory — making it all the more remarkable if the company manages to keep its retail prices stable.

Apple’s answer might lie in a clever balancing act. Instead of passing the extra cost directly to customers, the company could absorb part of the increase, sacrificing some profit margins to preserve its competitive pricing. With Apple’s services division, including subscriptions and digital content, now a major revenue driver, the company has more financial flexibility to offset slimmer hardware profits.

However, that doesn’t rule out some price tweaks for higher storage variants. Apple has used this strategy before, keeping the base model price steady while nudging up the cost of 512GB or 1TB models. It allows Apple to maintain its “no price hike” narrative while still increasing the average selling price per device.

Why smartphone prices are expected to rise

While Apple may manage to keep its pricing flat, the broader smartphone market is heading in the opposite direction. As AI integration, faster processors, and enhanced displays become standard, manufacturing costs are rising across the board.

Component suppliers are facing higher material prices, tighter capacity, and growing demand from AI chipmakers, which is pushing up expenses for everyone, from budget brands to luxury phone makers. Many companies are already signalling that 2026 flagship devices could see noticeable price jumps , citing the escalating costs of silicon and advanced camera modules.

For Apple, however, the strategy seems clear: maintain consumer confidence by keeping pricing predictable. By resisting the temptation to hike prices, at least on paper, the company positions itself as a steady player in a volatile market.

If history is any indication, Apple’s ability to balance innovation with price consistency could once again work in its favour.

So, while the iPhone 18 might not be revolutionary in price, its steady cost could be exactly what keeps Apple ahead of the curve in 2026.