Will Apple preserve iPhone 18 Pro pricing at 17 Pro levels?
Nota Bene #AAPL #Apple Management · 4 comments
by Horace Dediu
History says yes.
The global smartphone market is facing structural pressure from rising memory prices. In particular, the spread of AI technology is sharply increasing demand for high-performance memory, tightening supply and pushing prices up quickly. As a result, some Android manufacturers have raised prices on new products, and low-margin budget models could shrink in the market. The industry also sees the trend as potentially leading to a contraction in the overall Android market size.
Against this backdrop, Apple has chosen a strategy of keeping prices for its main models unchanged. Pu’s analysis said the iPhone 18 Pro is likely to start at $1,099 and the Pro Max at $1,199, maintaining the existing price range. That would be the same as the previous model. It is interpreted as a strategy to secure price competitiveness even if Apple accepts some margin decline to defend market share.
Apple is also expected to pursue a two-track strategy that considers both price accessibility and profitability. It would keep base-model prices to lower the barrier to entry, while raising prices for higher-end models with larger storage capacity to offset profits. It has also been suggested that an ultra-premium iPhone 18 Ultra could be added, and the overall average selling price (ASP) is expected to rise.
Ultimately, Apple’s strategy aims to exploit weaknesses in the Android camp, which is under pressure to raise prices. While rivals face demand contraction from higher prices, Apple could keep prices relatively stable and expand user inflows. A recent rise in demand from Android users switching to iPhones has also been detected, raising the likelihood that Apple will strengthen its influence in the premium market through this strategy.
Source: 디지털투데이 via Analyst: Jeff Pu
NB: There is always a huge surprise when Apple does the same thing it always does.
Rule 1: Pricing choices Apple makes are based on a strategy.
Rule 2: Apple does not respond to competition with changes in pricing
Rule 3: Apple does not respond to supplier pricing with changes in pricing.
Rule 4: The secondary market absorbs low end demand.
4 comments
Jointdoc ·
Would you consider the iPhone 16 (or older) as an iPhone NEO, or should they have a separate line ?
FredHS ·
Been thinking about this for a while - like everyone else, eh?
Used iPhones become more attractive and likely command higher prices as Android phones must raise prices at all levels. This gives Apple some latitude to raise prices selectively.
Apple customers can afford price hikes. It's called K-shaped.
deemery ·
No clicks to be made by ANALysts when Apple follows these rules...
Horace Dediu ·
Historically, the previous generation(s) were the "low end" products and the secondary (used) market were even lower end. That has been working fine but it's possible to imagine a more aggressive approach to reach non-consumers.