The recent launch of the iPhone 18 Pro has confirmed a notable increase in prices, with the model starting at Rs 1,64,900 in India, compared to Rs 1,34,900 for the previous iPhone 17 Pro. The launch was conducted by Apple CEO John Ternus during the Surprise and Shine event at Apple Park. Additionally, the debut of the first foldable device, the iPhone Duo, is priced significantly higher at Rs 2,99,900 in India, reflecting the industry’s ongoing struggles with rising component costs.

The price hike has been attributed to a crisis in memory components, leading to increased manufacturing costs. Former Apple CEO Tim Cook had previously indicated that such price adjustments were likely, and this has now come to fruition. The Rs 30,000 increase in the iPhone 18 Pro constitutes around a 20 per cent rise from last year’s pricing, a trend echoed by the iPhone 18 Pro Max, priced at Rs 1,79,900, compared to Rs 1,49,900 for the iPhone 17 Pro Max.

 CyberMedia Research noted that Apple has opted to partially pass on the increased costs associated with components, rather than fully absorbing them. This price adjustment represents a substantially steeper increase than seen in prior generations’ releases.

Comparative Pricing Discrepancies

A point of concern raised during the launch relates to the disparity in pricing for Indian consumers versus those in other markets. While the iPhone 18 Pro has increased by Rs 30,000 in India, its price has only risen by $100, approximately Rs 9,500, in the United States. This significant discrepancy has prompted discussions about the economic impacts of global pricing strategies on consumer markets in India.

Furthermore, older models such as the iPhone 16 have also seen price increases, now listed at Rs 89,900, which is higher than the initial launch price of the iPhone 17. The iPhone 17 itself has increased by Rs 17,000. Independent tech analyst Yogesh Brar noted that certain iPhone prices in India have surged by as much as 41 per cent, contrasting with increases in the United States, which have mostly remained within the range of 10 to 21 per cent.

Brar articulated that despite valid reasons for these price changes, such as rising costs and currency fluctuations, Indian consumers are facing particularly steep increases for similar products compared to their American counterparts.

Impact of Pricing on Consumer Demand

The introduction of higher prices may potentially influence demand for the new models. However, analysts suggest that the segment of consumers purchasing high-end devices may remain somewhat insulated from this price elasticity. Tarun Pathak posits that while revenue could be stable, the volume of sales might decline, especially given the absence of a base model iPhone 18 at present.

Analysts foresee the Pro versions seeing strengthened revenue amidst these price adjustments. Despite this, Brar reflects that high-cost iPhones might shift consumer behaviour toward older or refurbished models, particularly if the base model prices are considered too high.

For many consumers dealing with the new price structures, incentivising purchases through offers during the upcoming festive season may mitigate the impact of the price increases. The base iPhone 17 remains a strong performer in the market, suggesting that demand for this model could bridge revenue gaps while new models are introduced.

As indicated by Cashify, the refurbished smartphone market may experience growth due to the newly established pricing, with iPhones leading this part of the market. The iPhone 18 Pro series is set for pre-orders starting September 12, and retail availability will commence on September 18, with expectations of sustained demand despite the increased prices. Long queues outside Apple Stores, akin to previous launches, are anticipated.

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