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Amid rising chip costs, Apple holds the line on iPhone pricing

Published: 05 Mar. 2026, 09:01

Apple's latest iPhone 17e lineup [APPLE]

Apple is taking on the fight with Samsung Electronics’ Galaxy S26 — not with flashy new features, but with what amounts to a stealth price cut.

Apple has doubled the base storage capacity of its latest entry-level iPhone from 128 gigabytes (GB) to 256 GB while keeping the starting price unchanged at 990,000 won ($670).

Apple on March 3 announced the launch of the iPhone 17e, the budget model in its iPhone 17 lineup, along with a new iPad Air powered by its latest M4 chipset. The move comes a year after the company unveiled the iPhone 16e in February last year — its first entry-level model in three years.

The centerpiece of the new release is Apple’s pricing strategy. Despite mounting cost pressures on smartphone makers amid the rising cost of memory chips, Apple has opted to freeze prices.

The previous iPhone 16e was offered in three storage options: 128 GB at 990,000 won, 256 GB at 1.14 million won and 512 GB at 1.44 million won. The new iPhone 17e drops the 128 GB model and instead comes in 256 GB and 512 GB versions priced at 990,000 won and 1.29 million won, respectively. Based on storage capacity, prices have effectively been lowered by 150,000 won compared to the previous generation, while maintaining the symbolic 990,000-won price point.

Specifications have also been upgraded. The iPhone 17e is equipped with the same A19 application processor found in the premium iPhone 17 models. Its communications modem has been upgraded from Apple’s in-house cellular modem C1 — first introduced in the 16e — to the more advanced C1X, offering speeds up to twice as fast as its predecessor.

On the back, the device features a 48-megapixel camera with 2x optical zoom. The display uses Ceramic Shield 2, the same material applied to the iPhone 17 series, offering three times greater scratch resistance than the previous model.

Apple has also added MagSafe wireless charging, a feature that had been absent from the 16e and drew criticism from consumers. The device will be available in white, black and soft pink.

Apple also unveiled a new iPad Air powered by its next-generation M4 chip. To enhance on-device AI performance, system memory has been increased by 50 percent from the previous generation to 12 GB.

Preorders for the iPhone 17e and the new iPad Air began Wednesday, with official sales starting March 11.

Apple's latest iPhone 17e lineup [APPLE]

Industry watchers say Apple’s latest strategy appears aimed at lowering price barriers to expand its market share in emerging markets such as India. According to market research firm Counterpoint Research, Apple’s shipment share in India stood at around 10 percent last year. However, in terms of revenue, Apple ranked first with a 28 to 29 percent share, surpassing Samsung Electronics’ 22 percent.

Still, the global smartphone industry is expected to face a challenging year. Counterpoint Research forecast on March 3 that global smartphone shipments will fall 12 percent on year to below 1.1 billion units in 2026, hit by rising memory prices. That would mark the lowest annual shipment volume since 2013.

The firm also warned of growing logistics and cost risks, noting that the Middle East plays a central role in global smartphone shipping routes. With the ongoing war in the region, detours to avoid war zones could lengthen flight times, leading to higher fuel, labor and insurance costs. Smartphones are typically transported by air due to their product characteristics, making them particularly vulnerable to such disruptions.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY YI WOO-LIM [[email protected]]