Apple report drops an iPhone 18 bombshell

Apple report drops an iPhone 18 bombshell

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Apple (AAPL) seems to be opting for edge pain instead of sticker shock.

Memory prices continue to rise due to relentless demand from AI data centers, but Apple is looking to avoid iPhone price hikes, even if it means taking a hit.

Analyst Ming-Chi Kuo, who has been a veteran covering Apple’s supply chain for several years, says the tech giant will stick with their approach when it launches the much-anticipated iPhone 18at least for now.

This pivotal decision puts the strength of Apple’s supply chain under the scanner as it heads for gains on Thursday, January 29, 2026 (after the market closes).

After covering the memory space extensively over the past few months, it’s clear that vendors have a lot of leverage for the foreseeable future.

Bellwethers in space, such as Micronare building mammoth factories to ease supply constraints, but most of these efforts are long-term, indicating potential problems for at least the next two years.

Of course, most hardware companies have no choice but to raise prices, but Apple isn’t your average hardware company.

Apple can take the hits and is far more insulated than any other hardware company in history, which could become its greatest strength amid the memory crisis.

Apple plans to keep iPhone 18 prices flat despite rising memory costs squeezing short-term marginsPhoto by Axelle/Bauer-Griffin on Getty Images” loading=”eager” height=”686″ width=”960″ class=”yf-lglytj loader”/>
Apple plans to keep iPhone 18 prices flat despite rising memory costs squeezing short-term marginsPhoto by Axelle/Bauer-Griffin on Getty Images · Photo by Axelle/Bauer-Griffin on Getty Images

Conformable TF International Securities analyst Ming-Chi Kuo, Apple is looking to take it on the chin with higher memory costs, instead of risking iPhone prices.

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Kuo’s reading is that Apple senses an opportunity in one that plays effectively to its scale and extraordinary supply chain.

In a post on X, Kuo acknowledged that higher memory costs will hit iPhone gross margins. However, we continued to say that,

Kuo boils down Apple’s thinking to three key moves.

  • Absorb the pain now: Memory prices are rising at an incredible rate, and Apple is opting for margin pressure over consumer backlash.

  • Locking Supply: Apple’s scale allows it to effectively secure components that others cannot, even as shortages grow.

  • Play the long game: Any short-term margin hit will be seen as temporary, with service revenue likely to fill in over time.

However, there is a significant risk that these pressures will not be contained, as Kuo notes that iPhone memory prices are still renegotiated on a quarterly rather than a semi-annual basis.

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