Rising memory costs may block iPhone 17 price cuts after iPhone 18 launch
A TechRadar expert warns that increasing component costs could force Apple to break its tradition of discounting older base models.
Apple may deviate from its long-standing pricing strategy for the iPhone 17 when the iPhone 18 eventually hits the market. A TechRadar phones expert suggests that the typical price reduction for older base models could be sidelined this cycle due to economic pressures in the hardware supply chain.
According to the TechRadar expert, the primary driver for this shift is the rising cost of memory. The expert noted that "the rising price of memory could mean Apple won’t drop the price of the iPhone 17 even when the iPhone 18 does finally launch." This suggests a scenario where Apple maintains the iPhone 17's current pricing while potentially launching the iPhone 18 at a higher price point to offset these increased component expenses.
The Apple Pricing Playbook
Historically, Apple has followed a predictable pattern: when a new generation of iPhones is released, the company typically reduces the price of the previous year's base-model iPhone by $100. This creates a tiered entry point for budget-conscious consumers while keeping the latest technology at a premium.
However, this discount does not extend to the high-end tier. Apple typically discontinues the Pro and Pro Max models of the previous generation—such as the iPhone 17 Pro and Pro Max—immediately upon the arrival of the new Pro series. By removing these flagship devices from the official store, Apple prevents older high-end models from cannibalizing the sales of its newest, most expensive hardware.
Market Implications
If Apple maintains the price of the iPhone 17 despite the launch of a successor, it challenges a core consumer expectation. For years, buyers have timed their purchases to coincide with new releases, knowing a guaranteed price drop would make the previous generation more accessible.
A refusal to lower prices could shift consumer behavior significantly. Users may be incentivized to hold onto their current devices for longer cycles or turn toward third-party retailers for discounts rather than relying on official Apple Store price cuts. This shift would reflect a broader industry trend where AI-driven demand for memory is squeezing supply and driving up costs across the mobile sector.
What to Watch
While the discontinuation of the Pro models remains a near-certainty based on historical patterns, the fate of the base iPhone 17 remains speculative. Observers should watch for official component pricing trends and Apple's initial iPhone 18 pricing announcements to see if the memory cost squeeze manifests in the final retail price.