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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.
“We saw more evidence of strong iPhone demand in 2Q25,” said Jefferies, pointing to around 22% year-over-year growth in equipment sales reported by major U.S. telecoms.
That figure, the highest in six quarters, was “driven by pull-in” ahead of potential tariffs, the firm noted, suggesting that industry trackers like Counterpoint and IDC may be underestimating Apple’s shipment growth.
Jefferies reiterated its forecast of an 8% year-on-year increase in iPhone shipments for the June quarter, above Counterpoint’s and IDC’s reported figures of 4% and 1.5%, respectively.
Despite this strength, Jefferies does not expect a stock re-rating based solely on current data.
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 “higher component costs and China tariff.”
The price hike would represent a 4%–5% increase year-over-year, but Jefferies cautioned that the move “may barely cover the above cost increases.”
Jefferies also highlighted Apple’s 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.
However, it warned that lower yields and higher logistics costs in India could add pressure to margins.
“Supply chain security and India’s localization requirement may prompt AAPL to move even if financially it does not justify the move,” Jefferies added.