Apple's Priciest iPhone Launch Yet: KeyBanc Warns of Stock Decline
iPhone prices are expected to skyrocket for the upcoming iPhone 18 generation, according to KeyBanc Capital Markets. The firm expects the iPhone 18 Pro to start at $1,249 and the iPhone 18 Pro Max to cost $1,399, making it the priciest iPhone launch on record.
The price increases are largely due to memory supply shortages, which have driven up the cost of consumer DRAM. Apple has negotiated some relief through discounts on other parts like displays, but cost pressure remains unavoidable.
KeyBanc models total iPhone 18 lineup builds at roughly 80 million units across Q4 fiscal 2026 and Q1 fiscal 2027, down from approximately 91 million a year earlier. This decline forms the core of KeyBanc's bearish thesis on Apple.
The firm attributes most of the decline to the absence of an entry-level option for price-sensitive customers, as the standard iPhone 18 has been removed from the fall launch and will be deferred until spring 2027.