Apple is widely expected to increase iPhone prices when the iPhone 18 Pro launches next month. The company recently exempted existing iPhones from a broad price hike driven by rising memory costs, but that was described as a temporary reprieve. Now two sources suggest the starting price for this year's Pro models could hit $1,399. That would represent a $300 increase over the predecessor, or roughly 27 percent. While Apple has shown a clear willingness to protect its margins, such a steep jump seems out of character even for a company that rarely shies away from premium pricing.

Key Facts at a Glance

• Apple is expected to raise iPhone prices at the iPhone 18 Pro launch next month.
• Existing iPhones were exempted from a recent memory-price-driven increase.
• Two sources claim the iPhone 18 Pro starting price could be $1,399.
• A $300 increase would be a 27 percent jump over the current model.
• Apple's recent price hikes on MacBooks have been smaller in percentage terms for lower-priced devices.
• Tim Cook says Apple considers units, revenue, and margin over the long term, not just a formula.

The Rumor: What's Being Said

According to the latest reports, the iPhone 18 Pro will carry a starting price of $1,399. That is not a trivial increase. The current iPhone 17 Pro starts at $1,099, and a $300 jump would be the largest year-over-year price hike for an iPhone Pro in recent memory. While Apple has occasionally introduced new price tiers for storage or size, a change of this magnitude for the base model would be unprecedented in the iPhone's modern era.

The timing is also notable. Apple recently raised prices across many product lines due to higher memory component costs, but it explicitly excluded existing iPhone models. That exemption was widely interpreted as a strategic pause, not a permanent stance. Once the new iPhone 18 series arrives, Apple may fold the higher memory costs into the new models. But moving the starting price from $1,099 to $1,399 goes beyond simply covering component costs.

Apple's Recent Price Hikes: A Pattern of Increases

Apple has never been shy about raising prices when it believes the market can absorb them. In recent years, the company adjusted prices on several key products. The base model MacBook Air, for example, went up by $200, from $1,099 to $1,299. Even the MacBook Neo, which surprised many with a $599 starting price, was later increased to $699. That pattern shows an appetite for protecting margins, especially in a period of global inflation and supply chain pressure.

However, those increases were modest in percentage terms. A $200 increase on the MacBook Air is about 18 percent. A $100 increase on the MacBook Neo is roughly 17 percent. For the iPhone 18 Pro, a $300 increase on a $1,099 base price would be 27 percent. That is significantly larger than any recent Apple price adjustment for a mainstream product.

If Apple were to apply that same percentage increase to a MacBook Pro, it would mean a $300 jump from $1,699 to $1,999. That did happen, and it was noticeable. But the MacBook Pro is a professional-grade tool, not a mass-market smartphone. The iPhone is Apple's most important product, and it is far more price-sensitive for consumers.

A $300 Jump Is Different in Percentage Terms

One might argue that $300 is not a large amount in the context of a premium smartphone that many buyers finance over two years. But the percentage increase matters because it sets a precedent. A 27 percent price hike in a single generation could alter perceptions about the iPhone's value proposition. It also creates a higher baseline for future models. If next year's iPhone 20th anniversary model is even more expensive, as some analysts expect, then the $1,399 starting point could become the new normal.

Historically, Apple has preferred to introduce new features or storage tiers when it wants to raise the average selling price. The base model price often remains stable, while the higher-end configurations become more expensive. That strategy allows Apple to claim it did not raise the starting price even as consumers spend more. A $300 bump in the base model changes that narrative entirely.

Tim Cook's Philosophy on Pricing

During Apple's latest earnings call, Tim Cook addressed the company's pricing philosophy. He noted that Apple looks at units, revenue, and margin when making pricing decisions, rather than relying on a simple mathematical formula. He also emphasized a long-term view instead of a 90-day clock. That comment suggests Apple is willing to accept some short-term pain if it protects the brand's long-term health.

But a 27 percent price increase could easily hurt unit sales. Many consumers may decide to wait another year or keep their current iPhone for longer. Others might switch to the standard iPhone 18, which will likely be much cheaper. If Apple loses enough upgrades, the revenue and margin gains from a higher price could be offset by lower unit volume.

There is also the possibility that next year's iPhone, widely referred to as a major 20th anniversary update, will be a much more compelling upgrade. If that is true, consumers may be especially reluctant to buy the iPhone 18 Pro this year. Why spend $1,399 on a phone when a significantly better model is just months away?

How This Could Affect Buyers

For those who buy their phones outright, a $300 price increase would be a significant disincentive. It is not just a one-time cost; it affects trade-in values, resale prices, and the total cost of ownership. Even the Apple Upgrade program, which lets customers lease the latest iPhone and upgrade annually, would see higher monthly payments. Some people may still accept that cost, especially if they view the iPhone as an essential tool. But many are likely to hold onto their current device for another year.

It is also worth considering the psychological impact of crossing the $1,399 threshold. For many consumers, $1,400 is a meaningful round number. Once a smartphone approaches laptop prices, buyers start to question whether they truly need the latest Pro model. That could push more people toward older models or mid-range Android devices, which have become increasingly competitive.

Why Apple Might Still Try It

Despite the risks, there are reasons Apple might believe a $1,399 starting price is acceptable. First, the iPhone is a status symbol and a necessary tool for many users. Demand tends to be relatively inelastic, especially among fans who upgrade every year. Second, the Apple Upgrade program and carrier financing spread the cost over monthly payments, which makes the price less painful. Third, Apple's ecosystem lock-in is strong. People invested in AirTags, Apple Watch, AirPods, and services like iCloud and Apple Music are less likely to leave.

Apple may also point to the broader market. Flagship Android phones from Samsung have already crossed the $1,000 mark, and some foldables are over $1,500. In that context, a $1,399 iPhone is not entirely out of line. But that does not mean consumers will accept it without complaint, especially if the iPhone 18 Pro does not offer a compelling reason to upgrade.

Another factor is memory prices. If the iPhone 18 Pro uses more expensive DRAM and NAND storage, Apple's bill of materials could increase significantly. A $300 price hike might be an attempt to protect profit margins rather than to maximize revenue. However, Apple could also absorb some of those costs, as it has done in the past, to avoid alienating buyers.

What is your view? Do you think a $300 increase is realistic, or would a 27 percent jump be too much even for Apple to try? Share your thoughts in the comments below.

Source:9to5Mac News