Higher EMIs, rising prices: Why the next iPhone could be a tough buy in India

With only two months left until Apple unveils the new iPhone 18 series and other hardware at its September launch event, many are wondering how much more the new devices will cost compared to their predecessors. Apple has already raised prices across a wide range of products, including iPads, Macs, and home devices. In some cases, prices have increased by 18 per cent to nearly 33 per cent, largely due to the global memory shortage as AI companies snapped up memory supplies for data centres.

Given the current situation, analysts and industry insiders believe that the new iPhones launching this fall may cost substantially more. This could place an additional burden on consumers’ pockets at a time when the cost of living remains high, inflation continues to weigh on household budgets, and job uncertainty in the AI era is making many people anxious.

Rising gadget prices and the prospect of a sharp increase in iPhone prices have sparked concerns online that smartphones could take an even bigger bite out of consumers’ budgets amid persistent inflation. In India, for example, where wage growth has remained sluggish and youth unemployment is high, buying a pricey iPhone could mean taking on a higher EMI burden.

The big picture

While Apple doesn’t comment on future pricing, a Counterpoint Research report estimates the bill of materials (BOM) for the upcoming iPhone 18 Pro Max could rise to $300 compared to the iPhone 17 Pro Max released last year. That’s roughly a Rs 28,717 price increase to manufacture the highest-end iPhone with 1TB of storage.

Rising NAND and DRAM memory prices, along with the higher manufacturing costs of Apple’s next-generation 2nm chip and its advanced packaging, are also expected to increase production costs. Camera costs are expected to rise slightly as Apple plans to introduce a new camera technology in the iPhone 18 Pro and Pro Max.

The iPhone Fold could standardise a widescreen foldable phone.

Apple typically raises the prices of its products only under exceptional circumstances. If you have been wondering why this could happen now, the AI boom is driving up the prices of everyday gadgets. There’s no sugarcoating it: companies like Apple are likely to protect their profit margins by eventually passing the higher costs on to consumers. Since iPhones are already priced at a premium, the ongoing memory shortage is likely to force consumers to pay even more.

RAM shortage to continue

While artificial intelligence was initially seen as a positive shift in productivity, it is now affecting various aspects of daily life, from environmental concerns, including the consumption of billions of gallons of water and other natural resources, to the spread of AI-generated content on social media, declining incomes, and job cuts.

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The AI boom has also contributed to a shortage of memory used in smartphones and laptops, leading to a sharp rise in RAM prices as memory-chip makers shift production toward more profitable high-bandwidth memory for AI data centres and away from consumer-grade DRAM. According to Counterpoint Research, DRAM prices rose by 80 to 90 per cent in just the first six weeks of 2026. It is therefore unsurprising that DRAM prices are expected to jump by another 50 per cent or more in 2026, according to market researcher TrendForce.

The situation has reached a point where brands are reducing production of low-end and budget smartphones and laptops. More companies are shifting their production priorities toward mid-range and high-end devices. Even the prices of premium smartphones and laptops are rising, and manufacturers are likely to pass along these higher costs to consumers.

We have already seen Apple raise prices across some of its products recently. Insiders expect another steep round of price increases for smartphones and laptops in the second half of the year, with fewer discounts likely during the festive season.

Apple is increasing the price of MacBooks and iPads worldwide due to rising memory and storage chip costs. (Image credit: Anuj Bhatia/Indian Express)

Don’t delay buying a new iPhone

With the memory crisis expected to continue until 2028, it may not make much sense to wait longer to buy an iPhone if you have already been holding off for a long time. I wouldn’t expect the current-generation iPhone 17’s price to drop anytime soon, even after the iPhone 18 launches. Experts are already hinting at a possible price increase for the iPhone 18, which could make it more expensive than the iPhone 17.

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However, if you have been waiting to upgrade to a standard iPhone model, it is worth noting that Apple may not release the iPhone 18 this year, unlike in previous years. Instead, the company could launch the device in spring 2027. While that would be an unusual move, it would also keep the iPhone 17 on the market for longer.

…but what about the iPhone 18 Pro/Max?

Well, both the iPhone 18 Pro and iPhone 18 Pro Max are expected to launch this fall, but the new models are likely to have starting prices that are $200 (approx. Rs 19,148) higher than last year’s models. In India, however, the iPhone 18 Pro models could cost even more. As a result, your monthly EMI payments may also increase significantly. Keep that in mind before getting too excited about the iPhone 18 Pro lineup.

I wouldn’t recommend buying the iPhone 17 Pro or iPhone 17 Pro Max now if you have already decided to get the iPhone 18 Pro series.

Apple is reportedly considering a major change to its iPhone release strategy, with premium iPhone 18 models and a foldable iPhone expected to take centre stage in 2026. (Image: X/Saurav)

Pricier iPhone 18 Pro, iPhone Fold may hog the spotlight

Despite the tough economy, Apple’s September event is expected to focus on pricier Pro models and a new ultra-high-end foldable iPhone. Perhaps the strategy is to target consumers who are already flush with cash, especially those working for new-age AI companies, influencers and content creators. High-end iPhones remain in demand as both highly useful devices and status symbols.

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Clearly, Apple is looking to position the iPhone 18 Pro and Pro Max as the crème de la crème devices. Both models may feature under-screen Face ID for the first time, but the Dynamic Island is expected to remain. The iPhone 18 Pro and iPhone 18 Pro Max are also expected to feature a uniform rear design instead of the two-tone look seen on the current iPhone 17 Pro models. The camera lenses are expected to appear more prominent, while the Apple logo could feature a reflective finish.

But Apple is looking beyond the premium iPhone Pro series. For the first time, the company may launch a foldable iPhone that could cost over $2,000 (approximately Rs 200,000). However, the device may remain in limited supply, making it extremely difficult for consumers to get their hands on Apple’s first foldable iPhone.

The iPhone Fold, or whatever Apple may ultimately call it, is expected to feature a 5.5-inch exterior display and a 7.8-inch interior display, which is slightly smaller than the 8.3-inch iPad mini. It is likely to have a square screen when folded, making it considerably wider when unfolded. I expect it to look similar to Samsung’s upcoming Galaxy Z Fold 8 Wide, which is set to launch early next week at an event in London.

Apple used WWDC 2026 to showcase a revamped Siri and a broader AI strategy focused on practical features integrated across its devices. (Image: The Indian Express/ Anuj Bhatia)

Widening income gap and rising cost of living

Rent, groceries, petrol, travel, and EMIs. If you are a young person working and living in a metro city, you have likely seen countless discussions online and on Reddit asking, “Why is everything so expensive?”

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Times are tough for many people, especially young adults. Student loan debt is rising, and even getting a job after pursuing traditionally “safe” courses such as a BTech in Computer Science or an MBA has become increasingly challenging. The impact of inflation is real, and factors such as the US-Iran war and AI Boom have further contributed to rising costs.

The question is whether consumers will show interest in Apple’s more expensive iPhone models, which are due to launch later this year. Sure, Apple has a strong pull, and many people are willing to pay a premium for its products. However, rising inflation, soaring housing prices, hidden costs, stagnant wages, and a widening wage gap, particularly affecting young people, could make it more difficult for consumers to justify spending more on premium devices such as the iPhone in this economy. Of course, EMIs and easy personal loans have made iPhones “accessible” to millions of Indians.

But as the global economy takes shape and AI rapidly displaces white-collar jobs, one wonders whether consumers will still have the same appetite for paying premium prices for high-end smartphones as they once did. There is a real imbalance of power, and consumers are feeling a greater squeeze from rising rents, grocery bills, and the increasing prices of everyday gadgets.