iPhone 18 Pro Costs More to Make, Apple May Cut Profits to Keep Price Down
Listen to the story
Apple's next flagship phone, the iPhone 18 Pro, is reportedly expensive to manufacture, according to industry reports.
The high production cost could push Apple to reduce its margins instead of raising the retail price too much.
A margin is the amount of profit a company makes after covering production costs. Cutting margins means Apple would earn less on each unit sold.
This approach would let Apple keep the iPhone 18 Pro's price closer to previous models, even though it costs more to build.
The phone is expected to launch in September, following Apple's usual yearly release schedule.
There have also been rumors of a possible price increase across Apple's product line, though nothing has been confirmed.
Meanwhile, the current model, the iPhone 17, is holding steady in price. Its 256GB version is still listed at 889 euros on Amazon.
This stability suggests Apple may be trying to avoid alarming customers before the new model's release.
Rising component and manufacturing costs have been a growing challenge for smartphone makers in recent years.
Analysts will be watching closely to see whether Apple absorbs the extra costs itself or eventually passes them on to buyers.
For now, consumers are left waiting for official pricing details, expected closer to the September launch event.
Vocabulary10 words
- flagship
- a company's best and most important product
- manufacture
- to make products, often in large amounts
- margin
- profit left after paying all costs
- retail price
- the price customers pay in a shop
- rumor
- information people share that is not officially confirmed
- component
- a small part used to build something
- launch
- the moment a new product becomes available
- absorb (costs)
- to pay for extra costs without passing them to others
- analyst
- a person who studies information to give expert opinions
- consumer
- a person who buys and uses products
Quiz
Answer key
1. Because production costs are high and Apple wants to limit price increases 2. Apple will earn less profit per phone 3. 889 euros
Fill-in-the-blank listening
Play the audio again and fill in the missing words as you listen.
Apple's next flagship phone, the iPhone 18 Pro, is reportedly expensive to _____, according to industry reports.
The high production cost could push Apple to reduce its _____ instead of raising the retail price too much.
A margin is the amount of _____ a company makes after covering production costs.
This approach would let Apple keep the iPhone 18 Pro's price closer to _____ models.
The phone is expected to _____ in September, following Apple's usual yearly release schedule.
There have also been _____ of a possible price increase across Apple's product line.
The current model, the iPhone 17, is holding _____ in price.
Its 256GB version is still listed at 889 euros on _____.
Rising component and manufacturing costs have been a growing challenge for smartphone _____ in recent years.
For now, _____ are left waiting for official pricing details.