Apple’s upcoming iPhone 18 lineup may see increased prices due to strong demand and mounting cost pressures. Analysts at Jefferies predict a potential price hike of $50 for select models, representing a 4-5% year-over-year increase.
Strong second-quarter demand was reported by major US telecoms, with equipment sales growing 22% year-over-year. This figure is the highest in six quarters and may indicate that industry trackers are underestimating Apple’s shipment growth.
Jefferies forecasts an 8% year-on-year increase in iPhone shipments for the June quarter, above Counterpoint’s and IDC’s reported figures of 4% and 1.5%, respectively. However, Jefferies does not expect a stock re-rating based solely on current data.
The analyst firm expects Apple to shift more iPhone production to India, with 18% of units produced in the second half of 2025 and rising to 35% by late 2026. This move may help offset higher component costs and China tariffs. However, it also warns of potential pressure on margins due to lower yields and logistics costs.
Jefferies notes that supply chain security and India’s localization requirements may prompt Apple to invest in the country even if financially justifiable. The analyst firm will continue to monitor the situation closely.
Apple’s iPhone 18 lineup is expected to be a key factor in determining whether it is a bull or bear market play. With demand on the rise, investors are advised to stay informed about potential price movements and strategic decisions by the tech giant.
Source: https://www.investing.com/news/stock-market-news/apple-may-raise-iphone-18-prices-after-q2-pullin-says-jefferies-4159570