Apple Held The Line On MacBook Pricing While Microsoft Hiked Surface Prices, But The iPhone 18 Is Where The Streak Reportedly Breaks Rohail Saleem • at EDT Add on Google Actual mass production is rumored to begin in July When market distortions become so extreme that the underlying economics stop making sense, retreat is the only recourse. And, this is exactly what Morgan Stanley is now betting on in relation to Apple's ongoing bid for uncontested market share supremacy via a combination of price freezes and strategic hoarding of memory resources. Morgan Stanley believes Apple will not be able to sell the upcoming iPhone 18 variants at the same prices as those of their equivalent iPhone 17 counterparts Apple's emergent strategy to freeze the prices of its products amid the ongoing memory-driven turmoil first became evident when it refused to hike the prices of its MacBooks even as Microsoft embarked on a bruising inflationary spiral for its Surface laptops. Related Story Apple Quietly Scoops Up Any Available LPDDR5 Supply While Freezing iPhone Prices, Pushing Chinese OEMs To Kill Their Ultra FlagshipsFollowing these ill-timed price hikes, Apple's comparative Mac-related price advantage has only become more entrenched. For instance, the 12-inch Surface Pro now starts at $1,049, while the 13-inch M4 MacBook Air from Apple starts at $999. For context, this base Surface variant previously retailed for just $799. At the other end of the spectrum, the 15-inch Surface laptop with 64GB of RAM, the Snapdragon X Elite SoC, and a 1TB SSD now costs $3,649. For comparison, the 16-inch M5 Pro MacBook Pro from Apple with equal RAM and SSD starts at $3,299. Apple's implied strategy of a price freeze received another boost just last week when the Cupertino-based tech giant decided to discontinue the base 256GB storage variant of the M4 Mac mini rather than hiking its price. Even so, this strategy is now running headlong into deteriorating economic realities. For instance, at its latest earnings call, Apple conceded that it expects a "substantial" increase in memory costs in the June quarter, and that it would resort to a number of strategies - which presumably includes price hikes - to manage the ensuing impact on its margins. Morgan Stanley analyst Erik Woodring expects Apple to raise prices by at least $100 across all iPhone 18 models launching in the second half of this year, on a like-for-like configuration basis.$AAPL— Jukan (@jukan05) It is hardly a surprise, therefore, that Morgan Stanley's Erik Woodring now expects Apple to raise the prices of the upcoming iPhone 18 variants by $100 over their iPhone 17 counterparts. Do note that the given magnitude of price hikes won't fundamentally alter Apple's competitive advantage, especially in this market. After all, Apple's competitors are hiking prices even more aggressively, with some Chinese OEMs reportedly facing Bill of Materials (BOM) as high as $917 for their Ultra-class flagships. What's more, Samsung has been increasing the prices of its Galaxy S-series for years without offering a meaningful upgrade as compensation. Even so, Apple's dreams of demonstrating its unparalleled heft and synchronous command of the supply chain by eschewing price hikes appear to have finally hit an uncompromising wall of memory-led cost inflation. About the : Writing is my one incontrovertible passion. Over the past six years, he has authored over 2,200 distinct articles on financial and tech-related topics, spanning nearly 1 million words. And he has been a member of Wcctech mobile team since 2025. As an alumnus of the University of Toronto, Rotman Commerce Program, I bring nuance, in-depth knowledge, and a unique perspective to every topic that I cover. When I'm not writing, I'm traveling the world, exploring hidden confectionaries and restaurants as an aspiring food connoisseur. Follow on Google to get more of our news coverage in your feeds. Deal of the Day Further Reading M5 MacBook Pro Hinge Movement Causes Spark, Resulting In Catastrophic Failure Just Two Days After Purchase Apple’s iPhone 20 May Be Out Of Reach For Millions, As Exclusive OLED Deal And DRAM Shortage Risk A Major Price Hike Apple Discontinues The 256GB Mac mini Just A Day After Warning Of A Memory Apocalypse Apple’s Fatal Misjudgment With Advanced Chip Supply & OpenClaw’s Popularity Has Resulted In Disgruntled Customers And Revenue Loss Read all on Apple Held The Line On MacBook Pricing While Microsoft Hiked Surface Prices, But The iPhone 18 Is Where The Streak Reportedly Breaks
