iPhone 18 May Cost $200 More — and Wall Street Loves It
Morgan Stanley predicts Apple could raise iPhone 18 prices by $200, potentially giving the stock a meaningful lift.
If you've been putting off upgrading your iPhone, brace yourself — your next one could hit your wallet a lot harder. Morgan Stanley is estimating that Apple's iPhone 18 lineup could carry a price tag roughly $200 higher than the current generation, a move that analysts believe could actually be a catalyst for the company's stock rather than a drag on sales.
The logic here isn't as crazy as it sounds. Apple has spent years proving that its loyal customer base will absorb price increases without flinching too much. A higher average selling price means fatter revenue per unit, and on Wall Street, that kind of pricing power is basically catnip for investors. If Apple can pull this off without tanking demand, the margin story becomes very compelling very quickly.
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Of course, the big question is whether everyday consumers — already dealing with a stubborn cost-of-living squeeze — will keep reaching for the newest iPhone when it costs even more than before. Apple has historically softened the blow through trade-in programs and carrier financing deals that spread the pain into manageable monthly chunks, so the sticker shock may not translate directly into lost sales.
For investors watching Apple's stock, a successful price hike cycle could represent a fresh earnings growth lever at a time when smartphone market saturation makes volume growth tougher to come by. Pricing power, not just unit sales, may be the next chapter of Apple's growth story — and Morgan Stanley seems to think the market hasn't fully priced that in yet.
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