Apple Gains 1.5% After UBS Keeps $296 Target on $1,999 Foldable iPhone Launch

Q: As AI demands push iPhone prices higher across the board, are budget-friendly Apple devices gone for good?

No — budget-friendly Apple devices are shrinking, not disappearing. Apple’s latest event points to a clear premium push: the new foldable iPhone Duo starts at $1,999, while the iPhone 18 Pro and Pro Max rose by $100 to $1,199 and $1,299. Analysts tie that to higher memory and storage costs as AI demand tightens chip supply, and to Apple’s need to add more RAM for on-device AI features. UBS said the price hikes may still not fully offset those costs. But Apple has not fully abandoned lower-price tiers. The old iPhone SE line is gone, yet it has effectively been replaced by the “e” line. The iPhone 16e launched at $599, and the iPhone 17e kept that price while adding some features. Reports also indicate an iPhone 18e is expected in early 2027 alongside the delayed base iPhone 18 and Air models. That suggests Apple still wants an entry point into its ecosystem, just at a higher floor than the $399-$429 SE era. The real shift is that “budget-friendly” now means relatively cheaper within Apple’s lineup, not genuinely low-cost. Apple appears to be protecting demand by keeping increases modest on mainstream models while steering buyers toward trade-ins, financing and leasing. In practice, that makes affordability more dependent on monthly payments than sticker price. So the bargain iPhone is likely gone. The entry-level iPhone is not. Apple still offers cheaper options, but they are becoming mid-priced devices rather than true budget phones.

3 articles · Updated · Yahoo Finance · Sep 10

Apple shares rose about 1.5% to $319.60 on Thursday after UBS kept a Neutral rating and a $296 price target following the company’s latest iPhone event.
UBS said the new foldable iPhone Duo starts at $1,999, while Pro and Pro Max prices rose by $100, but those increases may not fully offset higher memory costs.
The bank added that steeper price hikes could have hurt demand, even as Apple’s refreshed lineup now centers on the Pro, Pro Max and Duo models.
UBS expects base, Air and e versions of the iPhone 18 to arrive early next year, while Wall Street remains split: Bank of America kept Buy at $370, and Jefferies stayed Underperform at $263.66.