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A consumer passes in front of a billboard displaying Apple’s newly launched iPhone 17 Pro (Photo by Izhar Khan\/Getty Images)<\/p>\n
Getty Images<\/p>\n
When Apple\u2019s iPhone 18 Pro launches on September 9<\/a>, it will be more expensive than last year\u2019s model. Thanks to ongoing economic headwinds affecting memory and storage, analysts are predicting retail prices could rise by up to $200.<\/p>\n Unlike the Android-powered competition, Apple\u2019s corporate strategy enables it to better absorb higher bill-of-materials and retail prices to retain its margins. With a mix of hardware dependencies, consumer friction, and the implicit need for its dedicated fanbase to upgrade to secure the best iPhone experience possible, Apple should come through the current silicon supply issues<\/a> in a stronger financial position than its competitors.<\/p>\n Why Siri AI Forces An iPhone Upgrade<\/p>\n Apple intends to use proprietary artificial intelligence requirements to trigger a non-discretionary hardware replacement cycle across its global install base.<\/p>\n Although Apple has supported its iPhone hardware for many years, not every feature can be backported to phones sold in 2019. Much of the iPhone install base cannot run the full suite of Apple Intelligence software that will be bundled with iOS 27. Advanced on-device techniques such as generative AI and neural processing models will require 12 GB of memory<\/a>, a mandated limit that only the iPhone Air, iPhone 17 Pro and iPhone 17 Pro Max can meet.<\/p>\n Apple\u2019s community has been waiting years for Apple Intelligence and Siri AI to deliver on the promises made at the Worldwide Developer Conference 2024. The iPhone 18 Pro and 18 Pro Max, alongside iOS 27, will deliver on these promises.<\/p>\n There is a lot of pent-up demand for Apple\u2019s implementation of AI, and that demand will be seen in the iPhone 18 Pro sales. Apple knows it can pass on the volatile manufacturing costs directly to consumers, safe in the knowledge that this super-cycle of updates will find its customers.<\/p>\n How Apple Locks In Premium iPhone Users<\/p>\n Multi-device iCloud storage integration and cross-hardware system dependencies function as an economic exit barrier against platform switching.<\/p>\n With Apple increasing iPhone prices, many consumers will take this opportunity to consider competing smartphones. Those who do will quickly realize that a move from iOS to any Android phone requires significant work.<\/p>\n Personal data, such as photo archives, data backups and apps and games purchased through the Apple Store, do not leave their secure iOS containers with a snap of the fingers. Apple\u2019s velvet garden around your information<\/a> creates significant inertia for those considering moving platforms.<\/p>\n It\u2019s expected that iPhone owners will also use Apple\u2019s own peripherals, such as the Apple Watch and AirPods, which do not offer complete cross-platform support on Android. The financial investment in peripherals is just as strong as the investment in personal data. In light of these moves, the $200 surcharge feels like a relatively small ongoing cost to receive the biggest software update to the iPhone in years.<\/p>\n How iPads And MacBooks Cover The iPhone Price Hike<\/p>\n Coordinated price increases across iPad and MacBook lines establish a premium cost baseline ahead of high-volume seasonal product launches.<\/p>\n The iPhone 18 Pro price increase is not happening in a vacuum. Outgoing Apple CEO Tim Cook has already announced that price hikes are unavoidable<\/a>. Indeed, prices have already been increased on several iPad Air, iPad Pro, and MacBook models to counter the increased cost of silicon. This will diminish the backlash toward incoming CEO John Ternus and prepare the community for some sticker shock in September.<\/p>\n The normalization of price rises across Apple\u2019s secondary devices sets the tone for the September launch event.<\/p>\n