Apple is expected to announce the iPhone 18 Pro and 18 Pro Max, along with a foldable device, at its September 9 event. The company will likely delay the launch of its base model iPhone 18 until spring 2027, a strategic shift potentially driven by component costs and a desire to maximize revenue.
The iPhone event, titled “Surprise and Shine!”, will be held on September 9 at 10 am Pacific (1 pm Eastern). According to leaks and analyst expectations, Apple is prioritizing its more expensive devices this year. The base model iPhone 18 is rumored to launch in the spring of 2027, potentially alongside an iPhone 18e and a second-generation iPhone Air.
The change in strategy is linked to an ongoing memory shortage that has increased manufacturing costs. Former Apple CEO Tim Cook acknowledged in June that Apple would raise product prices to offset these costs. Nabila Popal, a senior director of data and analytics at IDC, explains, “Our assumption is that they're going to be launching three models in the fall, the premium side of the models of the 18 series. Then the mid/budget devices will be launched in the spring.” Popal believes this is a smart move to distribute revenue more evenly between the strong fourth quarter and the typically weaker spring quarter.
Apple’s expanded portfolio, with the iPhone Pro and Pro Max being particularly appealing to customers willing to spend more, also factors into the decision. When component costs rise, companies can either absorb the costs, raise prices, or, as Apple appears to be doing, focus on premium offerings. By delaying the launch of cheaper models, Apple aims to generate excitement for its higher-priced devices and make price increases less noticeable. This is a “premiumization” of devices, according to Popal.
Shawn DuBravac, chief economist at the Global Electronics Association, is optimistic about the long-term effects of rising technology prices. “Throughout the history of time, the deflationary pressures of technology have always flowed to the consumer,” DuBravac states. “I'm confident that will be the case again. It just will take some time for the markets to solidify.”
Read the original coverage
💬 Comments
📜 Comment Policy