Analyst Ming-Chi Kuo reports Apple is considering maintaining the price of the upcoming iPhone 18. Apple faces significant price hikes for memory components from suppliers. The company would absorb rising DRAM and NAND flash memory costs. This decision could impact hardware profit margins.

Apple aims to maintain its competitive edge and market share in a volatile economic climate. The company utilizes its robust and profitable services division as a key financial cushion. This division allows Apple to absorb increased production costs without raising consumer prices.

Apple prepares to release its quarterly earnings report on January 29. Investors will seek insights into the company’s financial health and future product strategies.