Apple prepares iPhone 18 Pro price hike and revamps stores for smart home display

Apple is preparing for higher iPhone prices and a retail store overhaul that could pave the way for its long-awaited smart home display, according to Bloomberg’s Mark Gurman in the latest edition of his Power On newsletter.

Component shortages have already pushed up prices across other Apple products, and Gurman says an iPhone increase now appears inevitable. The bigger question is how far Apple will go. Samsung and Google both raised prices on their latest flagships by around $100, and a similar move would take the iPhone 18 Pro to $1,199, roughly 9% above its current price.

Given the severity of the memory shortage, a $100 increase would be relatively modest and could leave Apple absorbing some of the additional costs. The company has already warned investors that higher component prices will put pressure on its gross margin this quarter.

There are good reasons for Apple to keep the increase in check. A $100 bump would keep the iPhone broadly in line with Samsung’s pricing and avoid the steeper increases recently seen across some Mac and iPad models. Apple also has some flexibility thanks to the iPhone’s loyal customer base, while a subscription program with monthly payments could make a higher upfront price easier to swallow.

Apple is also reworking the layout of its retail stores to make room for a new generation of smart home products. The company’s merchandising team is clearing space in the Avenues, the wall-mounted sections used to showcase products including the HomePod, Apple TV, AirPods and Beats, alongside third-party accessories.

Those areas are set for a significant redesign this fall, with some sections being rearranged and new dedicated display spaces added. Apple already has an updated Apple TV and a new HomePod mini in the pipeline, and Gurman believes the scale of the retail changes points to something more substantial — the company’s long-rumored smart home hub with a display.

A new product category would need more than shelf space. With its own operating system and interface, the home hub would benefit from a dedicated in-store setup where Apple can demonstrate how it works and how it connects with the rest of the smart home ecosystem.

Durov’s Code previously reported that Apple raised prices across nearly all of its product categories in late June, with the iPhone being the notable exception, amid the same pressure on memory and silicon supplies.