ISLAMABAD: Memory prices are surging dramatically due to explosive AI demand and analysts warn of massive fallout across the smartphone industry.

Android manufacturers have already started raising prices on numerous models while some budget devices face outright discontinuation.

Yet Apple appears ready to play a different game with its upcoming flagship lineup.

Analyst Jeff Pu recently forecasted that Apple will adopt an aggressive pricing approach for the iPhone 18 Pro and iPhone 18 Pro Max launching this fall.

This strategy focuses on keeping base configuration prices unchanged despite industry-wide cost pressures.

The iPhone 18 Pro is expected to start at $1,099 while the Pro Max could begin at $1,199 matching previous generation entry points.

Higher storage variants may see increases allowing Apple to protect overall profit margins without scaring away potential buyers at the entry level.

Such a move comes at a critical time when the global smartphone market faces its biggest decline in over a decade.

IDC forecasts a 12.9 percent contraction in shipments for 2026 with total units dropping to around 1.12 billion from 1.26 billion the previous year.

Memory shortages particularly DRAM and NAND chips used for AI processing and storage are driving this unprecedented pressure.

Low-end Android phones priced under $100 which accounted for 170 million units in 2025 are expected to suffer the most as component costs eat into thin margins.

Several smaller manufacturers may exit the budget segment entirely or significantly reduce offerings.

Apple’s reported plan could accelerate a shift where premium devices capture greater share while budget options shrink.

This aligns with earlier observations from Ming-Chi Kuo who noted Apple’s ability to absorb rising costs through long-term supplier deals and scale.

The company might offset any absorbed expenses via its high-margin services business including Apple Music Apple TV+ and iCloud.

Early 2026 data already shows Apple gaining ground in key markets as Android competitors grapple with financial strain.

Demand for AI features has intensified competition for advanced memory components pushing prices up sharply.

Industry reports indicate memory costs could surge over 400 percent in some segments by next year creating what some call RAMageddon.

Apple confirmed during recent earnings that it expects significantly higher memory expenses starting this summer.

Despite this the tech giant seems positioned to maintain stable pricing on its Pro models at least for base versions.

The fall launch will also introduce the first iPhone Ultra a new premium tier likely carrying a much higher price tag.

Positioning the Pro and Pro Max as relatively accessible could broaden their appeal against increasingly expensive Android flagships.

Consumers facing higher costs across competing devices may find Apple’s approach more attractive.

This pricing tactic might encourage switches from Android particularly among users seeking reliable premium experiences without sudden jumps.

Market analysts suggest Apple’s leverage with suppliers gives it advantages smaller players lack.

By holding base prices steady Apple could expand its user base and strengthen ecosystem lock-in through services.

The overall Android market contraction adds urgency to these dynamics.

Brands heavily reliant on budget and mid-range segments risk losing volume as entry-level options become costlier or disappear.

Some reports highlight potential 10 percent or higher price increases for certain Android models already hitting retail.

In contrast Apple’s consistent entry pricing sends a strong signal of stability amid turbulence.

Observers note this could widen the premium segment gap favoring companies with strong brand loyalty and diversified revenue.

Yet challenges remain as component costs continue climbing.

Apple must balance aggressive positioning with maintaining its legendary profit margins.

Higher storage tiers absorbing increases represent one way to achieve this balance.

The strategy also reflects confidence in sustained consumer demand for iPhones even in uncertain economic conditions.

As AI integration deepens across devices memory will remain a critical and expensive factor.

How manufacturers navigate these constraints will shape the smartphone landscape for years ahead.

Will more Android brands follow suit with selective pricing or will further consolidation occur?

The iPhone 18 series arrival this fall may provide early answers as buyers vote with their wallets.

Questions linger about the exact impact on market shares and whether Apple can sustain this approach long-term.

One thing appears clear the era of abundant cheap smartphones faces serious headwinds while premium players like Apple leverage scale for competitive edge.

Future implications point toward a more polarized market with fewer budget choices and greater emphasis on value perception at higher tiers.

Industry watchers will closely monitor launch reactions and sales data to gauge the success of this calculated move.