It’s strange seeing the base iPhone 18 not being a part of Apple’s family later this year. Instead, it will find a place among the iPhone Air 2 and the cheaper iPhone 18e early next year, with the company focusing on the significantly premium iPhone 18 Pro and iPhone 18 Pro Max, not to mention its first foldable flagship, the iPhone Fold. One research firm believes that even with DRAM prices out of control, demand for premium devices will remain, helping to keep Apple’s margins afloat.
The iPhone Fold will also contribute to Apple’s Average Selling Price (ASP), while the iPhone 18 Pro will maintain momentum
Currently, the smartphone and PC industry continues to be crushed by the overwhelming weight of the DRAM crisis, but Citi mentions in an investor note that Apple will “outperform the broader smartphone market through share gains, design-driven demand, and strong positioning in the mid-range price segment via promotions and subsidies.” So far, Apple has held its hand on making its iPhones more expensive.
CEO Tim Cook has pretty much admitted that current prices aren’t sustainable, meaning that the iPhone 18 Pro and iPhone 18 Pro Max are likely to become pricier. Given that these flagships will arrive with practically the same design but a multitude of upgrades underneath the hood, consumers could believe that those changes warrant a price bump, and for those who can afford the purchase, one of these devices will become a daily driver.
Citi also predicts that price hikes for the iPhone 18 Pro and iPhone 18 Pro Max are inevitable, but implies that shipments won’t suffer as “demand is more resilient.” The financial institution also mentions that the iPhone Fold will maintain Apple’s margins due to its higher price. What’s interesting about these statements is that Citi hasn’t mentioned whether the price bumps should be absorbed by Apple or the consumer.
TF International Securities analyst Ming-Chi Kuo previously assessed that Apple’s Services division can offer a significant financial cushion to the company if it decides that customers shouldn’t bear the increased iPhone 18 Pro and iPhone 18 Pro Max prices. After all, this segment continues to grow every quarter, giving Apple some leeway. Unfortunately, as evidenced by recent price hikes on multiple products, the Cupertino firm has different intentions.
Apple Intelligence is “unlikely to drive a significant upgrade cycle in the near term”
As great as Siri AI is for Apple in maintaining competitiveness with its rivals, Citi believes that consumer interest in the iPhone 18 Pro and iPhone 18 Pro Max won’t wane due to a lack of AI features. Assuming it were, the iPhone 17 wouldn’t have garnered millions of activations in China, where there was no Apple Intelligence support until now, when the authorities lifted the regulatory obstacle.
Even after the rollout, Apple Intelligence shouldn’t make or break a buyer’s purchasing decision, but Citi believes there’s long-term potential for Siri AI. For instance, increased user engagement can only lead to higher services revenue, assuming a paid plan is something Apple is concocting behind the scenes.
News Source: MacDailyNews
About the author: Omar Sohail is a reporter and analyst for Wccftech's mobile section, specializing in the technology and business of the mobile industry. His expertise lies in the intricate hardware supply chain, covering developments in semiconductor manufacturing, chip lithography, and camera sensor technology.
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