Apple’s base iPhone 17 has taken the smartphone industry by storm, with its aggressive pricing and stacked features being two key factors behind why it was the best-selling smartphone globally for Q1 2026, at least according to Counterpoint Research. Now, just imagine if it were $100 cheaper, what sort of reception would this handset garner from the public? There would be utter chaos and rightfully so, which is why Apple should keep this model around even after the base iPhone 18 launches in early 2027. While it’s an excellent strategy, there will be a newfound problem that Apple needs to tackle.
Assuming the iPhone 18 launches at $799, which could be tricky, given that Apple CEO Tim Cook has warned that the company’s DRAM stockpiling is running out, the technology giant has little flexibility to price the iPhone 17 at a lower price. It’s possible that the only notable upgrade in the base iPhone 18 is the A20 chip, with everything else remaining the same as the iPhone 17. This makes the price reduction for the latter an ideal course of action.
Apple has made these decisions in the past, but only when it made sense, and in early 2027, it definitely sounds like the right move to make. At $699 for an LTPO OLED, A19 chipset, 256GB of NVMe storage, a capable rear dual-camera configuration, and a rock-solid battery life, the iPhone 17 is going to be every bargain hunter’s dream.
In China, this specific model has already accumulated nearly 30 million activations, showing that consumers in the country won’t fall prey to the usual nationalist marketing of local brands and will pick a product that offers the most value. Unfortunately, this price cut creates a noteworthy problem for Apple with its entry-level model.

At this time, the iPhone 17e occupies this position, but the iPhone 18 is expected to be launched alongside the iPhone 18e, completing the entire lineup, starting from $599. Even with the current price difference of $200 that stands between the iPhone 17 and iPhone 17e, we’ve talked in our detailed comparison that spending more is the smarter choice.
With that difference reduced to just $100 between the iPhone 18e and iPhone 17, Apple’s cheapest offering could suffer from sales cannibalization. It’s also important to note that the same $100 price difference may exist between the iPhone 17 and iPhone 18, assuming Apple keeps a lid on the DRAM costs.
If that’s the case, Apple may also risk iPhone 18 sales going down the same tragic path as the iPhone 18e. Fortunately, the Cupertino firm can make things less troublesome for itself by raising the iPhone 18’s starting price to $899. Then it’ll only have one model to worry about. The entry-level iPhones have received their fair share of criticism, including being priced too high and shipping with watered-down features like a single rear camera.
With these trade-offs, buyers might feel compelled to spend a little extra and get a whole lot of smartphone in return. Then again, Apple could outright discount the iPhone 17 next year, putting an abrupt end to its momentum, but what do you think will happen? Let us know in the comments.
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