iPhone Price Hike 'Better Than Feared' But May Still Bite Apple's Margins

An investor note from GF Securities' analyst Jeff Pu suggests that Apple's iPhone price hike was better than expected, but may still impact margins. The iPhone 18 Pro models saw a $100 price increase, below market expectations of $200-$250.

Pu notes that the new iPhone series will likely face margin pressure due to limited hardware upgrades and increased costs. He remains cautious on the product cycle, citing uncertainty around demand for the iPhone 18 Pro/Pro Max.

The analyst sees strong consumer interest in the iPhone Duo, however, with Apple's first major form-factor innovation in years driving demand. Pu expects the company to ship 7 million units of the iPhone Duo by year-end, which he believes will partially offset margin pressure.