Apple raises iPhone prices ahead of foldable device launch

Apple has raised the price of its iPhone Pro models by $100, as new chief executive John Ternus prepared to unveil the biggest shake-up to the smartphone in its nearly 20-year history with the introduction of a folding screen.

The company’s foldable device, which is expected to debut later on Wednesday, has been in development for almost a decade and is expected to set a new high-water mark for iPhone prices, costing upwards of $2,000.

At Wednesday’s annual launch at Apple Park in Cupertino, California, the company said its iPhone 18 Pro and Pro Max models would be $100 more expensive than the comparable devices in last year’s 17 family, starting at $1,199 and $1,299, respectively.

The price increase reflects pressure from industry-wide component shortages, notably for memory chips, caused by the boom in data centre building.

This has left Apple with the choice to take a hit to its margins or pass the cost on to consumers, potentially affecting demand. Apple’s $100 price increase on its 18 Pro models was more modest than the worst-case scenarios foreseen by analysts.

The iPhone launch marks the first major public event for Ternus, who took over from Tim Cook as head of the world’s second-most-valuable company last week.

Cook was in the audience for the launch and featured in a movie-trailer-style opening video where he symbolically handed over to Ternus as the “main character”.

The debut of a foldable iPhone comes several years after Apple’s biggest mobile rivals including Samsung and Huawei began selling their own versions of a smartphone that can open up to show a bigger screen.

The iPhone announcement is being closely watched by investors looking for signs of how the tech group plans to navigate an ongoing supply chain crisis.

“A $200 [iPhone] price increase is potentially going to hit volume very hard,” JPMorgan analyst Samik Chatterjee said ahead of the event, while a $100 rise might calm anxious investors.

“A key thing everyone is watching for is: can the iPhone revenue continue to grow at this double-digit year-on-year growth rate?” Chatterjee added.

While a high-priced foldable iPhone could still be popular among Apple’s most loyal fans, the product will be in short supply at launch due to the complexity of manufacturing its display and hinge. UBS analysts expect it to sell about 10mn units in its first year, based on supply chain checks — a small fraction of the roughly 250mn iPhones sold every year.

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The iPhone still accounts for about half of Apple’s revenue, generating $209.6bn in sales for the 2025 financial year. Last year’s iPhone 17 family surprised analysts with stronger than expected sales, driving record revenue.

The memory chip crunch is expected to only worsen in 2027, leading to price rises across the industry. Apple increased its iPad and Mac prices by about 20 per cent in June. The smartphone market is forecast to shrink by more than 14 per cent globally in 2026, according to Counterpoint Research.

Wednesday’s launch also marks the first generation of iPhones since Apple unveiled its new AI-powered Siri voice assistant, using Google’s technology, earlier this year after a botched initial launch. Offering must-have AI features to consumers on newer devices with more powerful chips is seen as a potential driver for customers to upgrade their old devices.