Investing.com — Apple may increase prices for its upcoming iPhone 18 lineup following evidence of strong second-quarter demand and mounting cost pressures, according to analysts at Jefferies.<\/p>\n
\u201cWe saw more evidence of strong iPhone demand in 2Q25,\u201d said Jefferies, pointing to around 22% year-over-year growth in equipment sales reported by major U.S. telecoms.<\/p>\n
That figure, the highest in six quarters, was \u201cdriven by pull-in\u201d ahead of potential tariffs, the firm noted, suggesting that industry trackers like Counterpoint and IDC may be underestimating Apple\u2019s shipment growth.<\/p>\n
Jefferies reiterated its forecast of an 8% year-on-year increase in iPhone shipments for the June quarter, above Counterpoint\u2019s and IDC\u2019s reported figures of 4% and 1.5%, respectively.<\/p>\n
Despite this strength, Jefferies does not expect a stock re-rating based solely on current data.<\/p>\n
Looking ahead, Jefferies sees Apple (NASDAQ:AAPL) raising the selling price of the iPhone 18 Slim, Plus, and Pro Max models by $50 to help offset \u201chigher component costs and China tariff.\u201d<\/p>\n
The price hike would represent a 4%\u20135% increase year-over-year, but Jefferies cautioned that the move \u201cmay barely cover the above cost increases.\u201d<\/p>\n
Jefferies also highlighted Apple\u2019s accelerating shift of iPhone production to India. It expects 18% of iPhone 18 units to be made in India in the second half of 2025, rising to 35% by late 2026.<\/p>\n
However, it warned that lower yields and higher logistics costs in India could add pressure to margins.<\/p>\n
\u201cSupply chain security and India\u2019s localization requirement may prompt AAPL to move even if financially it does not justify the move,\u201d Jefferies added.<\/p>\n
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