Apple, despite its reputation, has never been a luxury company. Macs and iPhones may cost more on average than their competitor’s counterparts, but when you compare apples to Apple’s, a MacBook Pro or iPhone 17 Pro is worth spending a few dollars more than a comparable model from HP or Samsung.
Since its very first computer, Apple’s mission has been clear: build the best device in its class at the best possible price. That’s not necessarily the cheapest product (and quite honestly, often isn’t), but the one with the best mix of features, performance, and build quality for the price. Buying a new iPhone or MacBook shouldn’t be a difficult decision—if you’re willing to pay Apple’s prices, you’re getting a device that looks nicer, performs better, and lasts longer. It’s a balancing act that relies on all aspects of Apple’s development process to be in sync.
But over the past couple of months, that has begun to shift. In late June, the company was forced to raise prices on all Macs and iPads due to the worsening RAM crisis, including the MacBook Neo, a laptop that epitomized Apple’s pursuit of value so perfectly, it even exceeded Apple’s own lofty expectations. What was seen as the sign of a new era for Apple’s affordability now costs 20 percent more than it did when it launched in March and suddenly isn’t an impulse buy.
Now it looks like that balancing act will get a little more precarious when Apple launches its new iPhones next month. Not only is Apple expected to raise prices on iPhones, but the highly anticipated folding iPhone Ultra will likely start at more than $2,000. And suddenly, Apple’s carefully crafted balancing act could come crashing down.
In a way, this all started with the iPod. When it launched in 2001, it cost $399 for 5GB of storage, the same price industry-leading Creative charged for its Nomad Jukebox with four times the storage. Naturally, the iPod was seen as overpriced, outmatched, and downright laughable–until people got to use one and discovered that Apple got everything right. The form factor, transfer speeds, sound quality, and navigation were all superior to the Nomad Jukebox, and it didn’t take long for the iPod to become the most popular mp3 player.
And then Apple did something somewhat uncharacteristic–it expanded the line with cheaper models. Within four years, there was the $249 mini, $149 nano, and $99 Shuffle, basically an iPod for every budget. It was a strategy that paid off, turning the iPod into a cultural sensation with some 500 million sold.
When Apple followed up the iPod with the iPhone in 2007, there was a similar sticker shock. It started at $499 with 4GB of storage or $599 for 8GB of storage with a 2-year Cingular contract, about double what other so-called smartphones cost. But the iPhone was a repeat of the iPod: It quickly proved its worth, cheaper models followed, and the industry shifted. Apple repeated the formula with the iPhone X, pushing the starting price to $999 for the first time, then keeping the price steady and offering cheaper options alongside it.
But nine years later, Apple is at a crossroads. While the RAM crisis has spared the iPhone thus far, there are numerous signs that Apple is set to launch its most expensive iPhone Pro line ever, with prices set to rise $100-$200 across the board, and even more for higher-end storage options. To make matters worse, Apple is reportedly delaying the base iPhone 18 until the spring. That means there won’t be a new iPhone this holiday season that costs less than $1,200–and we don’t know yet if Apple will increase prices for the 17 and 17e.
It could be all too much for Apple’s balancing act. The iPhone 18 Pro is essentially an S-year model with a higher price tag, while the iPhone Ultra will be a first-gen product that merely looks like an overpriced Samsung Galaxy Z Fold8 clone.
Even with higher trade-in values, the Apple Upgrade program, and whatever exclusive Siri AI features are tied to the new phones, Apple is in real danger of selling fewer new iPhones than ever before. Apple fans have grown accustomed to a certain level of stability with iPhone prices, and after Apple already raised prices on the MacBook Neo, nothing is off the table.
Just a couple of months ago, 2026 was shaping up to be the year when Apple’s slow march up the mountain of affordability finally reached its zenith. Now it looks like it all might come crashing down.
Welcome to our weekly Apple Breakfast column, which includes all the Apple news you missed last week in a handy bite-sized roundup. We call it Apple Breakfast because we think it goes great with a Monday morning cup of coffee or tea, but it’s cool if you want to give it a read during lunch or dinner hours too.
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