Apple is reportedly moving to absorb rising component costs to keep the launch price of the upcoming iPhone 18 series stable. As global mobile DRAM prices surge due to supply chain pressures and high demand for AI-driven hardware, the tech giant is leveraging its significant financial reserves to secure chip supply. This strategic move aims to prevent passing increased manufacturing expenses onto consumers, maintaining a competitive edge as other smartphone manufacturers adjust their pricing models.

Industry analysts suggest that Apple is currently purchasing a massive share of available mobile DRAM at premium rates. While this aggressive procurement strategy may temporarily impact the company’s operating margins, it serves a dual purpose: ensuring a steady supply for the iPhone 18 production cycle and limiting the component inventory available to market rivals. By locking in these deals, Apple is utilizing its massive market leverage to navigate a volatile semiconductor landscape. iPhone Air Price Drops by INR 28,000 on Amazon.

iPhone 18 Price Stability Strategy

According to TF Securities analyst Ming-Chi Kuo, Apple is likely to keep the starting price of the iPhone 18 models flat to bolster marketing efforts. Kuo noted that memory pricing is now being negotiated on a quarterly basis, with further hikes expected in the second quarter of 2026. Despite these pressures, Apple’s "playbook" involves absorbing the immediate costs of LPDDR and NAND flash memory to capture a larger market share during a period of industry-wide disruption.

Market Impact on iPhone 18 and Rivals

The surge in component costs is already reshaping the broader smartphone industry. Reports indicate that chipmakers such as MediaTek and Qualcomm have reduced 4nm mobile chip shipments by approximately 15 million to 20 million units. While mid-tier and low-end devices are most sensitive to these shifts, premium competitors are also reacting; Samsung has reportedly increased costs for its high-end variants, including the Galaxy S25 Edge and its latest foldable devices. iPhone 18 Pro to Skip Black Finish for 2nd Consecutive Year: Report.

Long-Term Revenue Goals for iPhone 18

Apple’s willingness to take a hit on gross margins is viewed as a calculated long-term investment. By maintaining price stability for the iPhone 18, the company aims to expand its active user base, eventually recouping the initial hardware costs through its growing services division. This approach comes as CEO Tim Cook acknowledges ongoing challenges regarding memory prices and limited 3nm production capacity at TSMC, yet the company remains focused on using its capital to stabilize its future product roadmap.

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(The above story first appeared on LatestLY on Apr 06, 2026 10:52 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).