Apple is expected to boost the price of its next flagship iPhone 18 Pro, driven by a shortage of advanced chips used for artificial intelligence features. The company has not confirmed the change, but supply-chain sources indicate that rising component costs are squeezing margins on the premium model.
Why the chip shortage is hitting the Pro line
The iPhone 18 Pro relies on a custom processor designed to handle on-device AI tasks like real-time language translation and image processing. That chip is built using a cutting-edge 2-nanometer process, a technology that is still ramping up production. Industry analysts say yields on these chips have been lower than expected, limiting supply and pushing up per-unit costs. Apple typically secures early access to new node technologies, but even the company can’t escape the industrywide bottleneck. The shortage is particularly acute for the Pro model, which uses a larger die than the standard iPhone 18.
Apple’s history with pricing the Pro line
Apple has steadily raised prices on its Pro iPhones over the past several years. The iPhone 15 Pro started at $999, while the 16 Pro and 17 Pro each saw modest increases. If the company follows its pattern, the iPhone 18 Pro could jump by $100 to $200. But this time the cause isn’t just inflation or currency shifts – it’s a component crunch tied directly to the AI features Apple has been touting. The company has made AI a centerpiece of its marketing, and the Pro line is the main vehicle for those capabilities. A price hike risks alienating the very early adopters Apple needs to drive adoption of its AI ecosystem.
What the price increase could look like
Leaks from Asian supply chains suggest the standard iPhone 18 Pro might start at $1,199, up from $1,099 for the iPhone 17 Pro. The Pro Max variant could hit $1,399 or more. Those figures aren’t official, but they align with the cost pressures described by component suppliers. The shortage is expected to last at least through the first half of next year, meaning Apple may not be able to lower prices even after the initial launch wave. The company could also adjust storage tiers or drop the base model’s storage capacity to keep the entry price lower, but that would be a departure from recent practice.
How consumers are reacting
For now, the rumors are just rumors, but early reactions on social media are mixed. Some users say they’re willing to pay more for the AI upgrades; others argue the features aren’t compelling enough to justify another price hike. The iPhone 18 Pro isn’t expected until September, so Apple has time to gauge sentiment. But the chip shortage isn’t waiting. If the supply situation worsens, Apple may have to choose between raising prices or delaying the launch of certain AI features.
