Apple has built a reputation for keeping iPhone prices fairly predictable, even as the phones become more powerful every year. With the iPhone 18 series still months away, buzz around pricing has already heated up, primarily due to reports pointing to rising component costs. However, a fresh note from renowned Apple analyst Ming-Chi Kuo suggests that the situation may not be as worrisome for buyers as initially feared.

According to Kuo, Apple’s current thinking for the iPhone 18 lineup, expected in the second half of 2026, is to avoid raising prices as much as possible. In fact, the company is reportedly aiming to keep the starting price unchanged or very close to the current level. Kuo shared on X that maintaining a flat entry price will also help Apple from a marketing standpoint, especially at a time when smartphone buyers are becoming more price conscious.

This comes at a time when multiple reports have warned that the iPhone 18 could be more expensive due to higher production costs. A major reason for this is the next-generation A20 chip, which is expected to cost Apple significantly more to manufacture. TSMC, Apple’s longtime chipmaking partner, is dealing with intense demand for advanced chips, driven primarily by the rapid growth of AI and GPU-heavy workloads. As so many new customers are competing for limited production capacity, Apple is reportedly paying more to ensure the quantity it needs.

Memory prices are another concern. The industry-wide shortage has already driven up the cost of memory components, and Apple is no exception to this trend. Kuo claims that Apple has begun quarterly price negotiations with its suppliers, with increases expected through 2026. Some of these increases are said to be between 10 and 25 percent compared to 2025 levels. Naturally, this has led to speculation that Apple will pass on these costs to customers.

Despite these pressures, Kuo believes Apple will take a more aggressive approach. Rather than raising iPhone prices immediately, the company may choose to absorb the majority of the increased costs. According to the analyst, the aim is to use the current supply chain chaos to Apple’s advantage. By locking up critical components, minimizing the short-term impact on margins and keeping prices stable, Apple can strengthen its position and attract more buyers.

Kuo also suggests that Apple is comfortable with this strategy because it has other ways to recover lost margins. Services remains a key revenue driver for the company, and Apple can rely on long-term profits from subscriptions and digital services to balance things out. In simple terms, Apple may be willing to earn a little less on hardware today in order to make more money later through its ecosystem.

That said, it would be unrealistic to expect the price of each iPhone 18 model to remain completely unchanged. Apple has, in the past, found subtle ways to make pricing changes without upsetting its core audience. One possible move could be to keep the base model at the same starting price while charging more for the higher storage variants. This approach makes sense because the most price-sensitive buyers usually stick to the base version, while users opting for additional storage are often more willing to pay a premium.

Looking at recent history, Apple has managed to keep iPhone prices stable while improving the hardware. For example, the iPhone 17, despite offering more base storage than the first model, starts at $799 in the US and Rs 82,999 in India. If Apple takes a similar path with the iPhone 18, the entry-level price could be very close to the iPhone 17, which would be welcome news for many buyers.

Of course, a lot could change before the iPhone 18 series is officially unveiled, which is expected to happen around September. Supply chain conditions, global demand, and even currency fluctuations could affect Apple’s final decision. However, for now, the latest leaks point to a more reassuring outcome, where the iPhone 18 series has not seen a sharp jump in price and remains within the familiar zone for consumers.