The iPhone 18 Pro might start at a staggering $1,399, but Apple faithful probably won't even bat an eye at that $300 price hike. While rivals like Samsung know they can't get away with a similar bump, and have revised shipments accordingly, Apple remains a different beast.
Money talks
Overall smartphone shipments in 2025. | Image by Counterpoint Research
According to a deep dive byThe Wall Street Journal, Apple corners the market for wealthy phone buyers. This is precisely why it can raise the iPhone 18 Pro's price without fearing a massive drop in demand.
Apple dominates the premium category. | Image by Counterpoint Research
Apple shipped 219.8 million smartphones priced at $600 or above, far ahead of Samsung's sales of 60.4 million units, giving it a two-thirds market share.
No one does premium like Apple
Apple captures the majority of smartphone profits.
The disparity only grows the higher you climb. iPhones account for three-quarters of all smartphone sales priced at $1,000 or more, leaving Samsung, Huawei, and Google's top-tier devices to fight over the remaining scraps.
Unsurprisingly, Apple captures 66% of the smartphone industry's gross profit, massively outdoing Samsung (12%) and Xiaomi (2%).
Apple's latest iPhones swept the top three best-selling spots in the first quarter of 2026. Even the iPhone 16 made it to the top five.
How are iPhone buyers going to react to a $1,399 price tag?
Flipping the trend
Apple's CEO Tim Cook recently explained that soaring memory costs made a price increase inevitable. Some rivals have already raised prices, and most upcoming releases are likely to cost more than their current-gen counterparts.
As a result, smartphone shipments are projected to drop 14% from 1.26 billion units in 2025 to 1.09 billion units in 2026.
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The premium segment, which accounts for a quarter of worldwide shipments, is expected to buck the trend. Sales are estimated to go up 3.5% from 361 million units to 374 million.
How long can it last?
While Apple enjoys enviable brand power, its slow AI rollout and absence from the foldable market aren't going unnoticed. So, while most of its loyal user base will lap up the iPhone 18 Pro at whatever price it sells for, this might be the generation where casual users draw the line.
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Anam Hamid is a computer scientist turned tech journalist who has a keen interest in the tech world, with a particular focus on smartphones and tablets. She has previously written for Android Headlines and has also been a ghostwriter for several tech and car publications. Anam is not a tech hoarder and believes in using her gadgets for as long as possible. She is concerned about smartphone addiction and its impact on future generations, but she also appreciates the convenience that phones have brought into our lives. Anam is excited about technological advancements like folding screens and under-display sensors, and she often wonders about the future of technology. She values the overall experience of a device more than its individual specs and admires companies that deliver durable, high-quality products. In her free time, Anam enjoys reading, scrolling through Reddit and Instagram, and occasionally refreshing her programming skills through tutorials.
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