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iPhone sales might actually benefit from rising smartphone prices

Price hikes were expected all across the smartphone industry a few months back when memory shortages hit markets. These price hikes have now started occuring — smartphones from all brands are seeing unavoidable jumps in cost — but Apple might be able to use this chaos to its advantage and improve iPhone sales all over the world.

Apple’s game plan for rising prices

Renowned analyst Ming-chi Kuo has a fascinating theory about Apple’s business practices during these turbulent times. The newly released MacBook Neo and iPhone 17e support Kuo’s theory due to their very competitive pricing. In fact, the 17e actually kept the same price as last year’s iPhone 16e while also offering more storage for the same cost, a strategy that the company has made use of before.

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Kuo believes that Apple might use its influence to secure a reliable source of memory modules during these times and absorb the inflated costs to capture more market share. Apple’s new agreements with Samsung already reflect this as the latter will now renegotiate pricing much sooner than it used to before.
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More market share for the iPhone?

Due to its significant buying power in the industry, Apple has been able to negotiate terms where other companies are still stuck bargaining. Samsung demanded double the cost of its memory modules and Apple reportedly accepted the new prices on the spot without any attempt at negotiation.

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The company likely believes that the memory shortages will last at least a few years. Kuo reckons that Apple will try to refrain from hiking up prices for its products in an attempt to coax more customers into switching over to its ecosystem. That is how the company will cover the current losses while also capturing a significant portion of the market share.

It might just work

The new Galaxy S26 phones saw price jumps too, which makes me think that Apple might be on to something if it is in fact doing what Kuo believes. Then again, the iPhone 17 series saw price hikes for certain models last year as well.
It can’t be denied that the MacBook Neo is excellent value. If Apple does absorb rising costs for the next few years, it will undoubtedly see a significant subset of customers make the switch to its products, even if they might not have ever considered doing so before.

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Disclaimer: This story is auto-aggregated by a computer program and has not been created or edited by Themobiletechus.