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iPhone 18 Pro: Apple’s Price Rise Changes The Game For Google And Samsung

Tim Cook has confirmed that price increases are coming to Apple devices. Here’s how that benefits rival brands, and how it doesn’t.

Forbes 2 min read 7/10
iPhone 18 Pro: Apple’s Price Rise Changes The Game For Google And Samsung
Key Takeaways
  • Apple CEO Tim Cook confirmed iPhone 18 Pro prices will rise 12-15%, pushing the base model above $1,200 for the first time in the US.
  • The price hike is driven by a 2nm A19 chip, periscope 8x optical zoom, and a new titanium alloy chassis, increasing BOM costs by an estimated 18%.
  • Samsung's Galaxy S26 Ultra, expected in early 2027, could undercut Apple on price while maintaining premium features, potentially absorbing 2-3 million disaffected iPhone users.
  • Google's Pixel 11 Pro is slated to launch at $999, positioning it as the 'accessible flagship'—a gap Apple's price rise widens by at least $200.
  • IDC forecasts a 3-5 million unit sales drop for the iPhone 18 Pro in its first year if the price rise exceeds 15%, though revenue per device could offset the volume loss.
Apple's iPhone 18 Pro is set to cost significantly more than its predecessor, a price hike confirmed by CEO Tim Cook that will reshape the premium smartphone landscape. The move hands a strategic advantage to rivals Samsung and Google—but also forces them to reconsider their own pricing strategies. Tim Cook confirmed during Apple's annual shareholder meeting that component cost inflation and R&D investments in next-generation silicon and camera systems will push iPhone 18 Pro prices up by an estimated 12-15% over the iPhone 17 Pro. The starting price in the US is expected to cross the $1,200 threshold for the first time. This confirmation ends months of speculation and signals a deliberate shift in Apple's premium positioning. The price increase arrives as Apple prepares to equip the iPhone 18 Pro with a custom 2nm A19 chip, a periscope telephoto lens with 8x optical zoom, and a titanium chassis using a more expensive alloy. These upgrades, combined with rising memory and supply chain costs, leave Apple little room to absorb the margin pressure. For Samsung, the Galaxy S26 Ultra—expected to launch in early 2027—now has a window to undercut Apple while maintaining high margins. Samsung's smartphone division has historically saved its biggest marketing spend for moments when Apple stumbles on price. Google's Pixel 11 Pro, rumored to debut at $999, could position itself as the 'reasonable flagship' choice. However, the benefit is not one-sided. If Apple raises prices too aggressively, it risks slowing upgrade cycles among its most loyal customers—those who buy the Pro model every two years. Analysts at IDC estimate that a 15% price rise could reduce iPhone 18 Pro sales by 3-5 million units globally in the first year, though revenue could still increase thanks to higher average selling prices. Meanwhile, Samsung and Google may feel pressure to raise their own prices to capture extra margin, potentially eroding their value proposition. The broader market watches closely: if Apple succeeds, it validates the 'premium-plus' tier; if it fails, it opens the door for competitors to gain share in the ultra-premium segment. The official iPhone 18 Pro launch is expected in September 2026. Industry watchers will look at pre-order volumes and carrier subsidy changes as early indicators of consumer reaction. For now, Google and Samsung have a rare chance to capitalize on Apple's pricing gamble—but only if they resist the temptation to follow suit.

Frequently Asked Questions

Apple CEO Tim Cook confirmed the price increase is due to rising component costs, including the new 2nm A19 chip, enhanced camera system, and premium materials like titanium. The company also cites R&D investments in next-generation technologies as factors.

Samsung and Google can position their flagship models—the Galaxy S26 Ultra and Pixel 11 Pro—at lower prices, attracting cost-conscious premium buyers. The price gap of $200–$300 could shift market share if consumers perceive better value from rivals.

Analysts predict a 3–5 million unit drop in first-year sales if the price rises 15%, but higher average selling prices may still increase overall revenue. Apple's loyal user base may slow upgrade cycles rather than switch brands.

The iPhone 18 Pro is expected to launch in September 2026, following Apple's typical annual cycle. Pre-orders and carrier subsidy plans will offer early demand indicators.

Industry estimates place the base model above $1,200 in the US, up from around $1,099 for the iPhone 17 Pro. Exact pricing will be announced at the launch event.

Yes, both brands may see an opportunity to increase margins by raising their prices slightly, but doing so could undermine their value proposition. The risk is losing the pricing advantage Apple's hike created.

Original source

www.forbes.com

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