Here come the price hikes: the continuing memory crisis will make the iPhone 18 Pro even more expensive to manufacture, with it expected to cost Apple almost 40% more to make than the iPhone 17 Pro.
Like almost all other tech producers, Apple is subject to the rising costs and limited supply of memory. With the iPhone 18 Pro release on the horizon and expected to cost consumers more than ever to acquire, it will also be very expensive for Apple to make in the first place.
In analysis from TrendForce into the bill of materials (BOM) of the iPhone 18 Pro, it is believed that the cost of producing one unit will be about 38% higher year-over-year, compared to the iPhone 17 Pro.
The chief reason for the BOM increase is memory. One year ago, the cost was 10% of the total price for the iPhone 17 Pro's 256GB model. One year later, the cost is thought to be approximately 34% for Q3 2026.
A Bill of Materials proportion of costs for the processor, display, and memory in the iPhone 18 Pro. - Image Credit: Trendforce
However, it will get more expensive. In the first half of 2027, the same component will cost over 40% of the BOM.
TrendForce believes that this is a major change in cost for Apple. Previously, the processor and the display were the main cost drivers, not memory.
Still painful for consumers
The price rises of components will be primarily felt by Apple, but they will inevitably be passed on to consumers. However, TrendForce thinks it won't be a transparent handing-off of costs.
Apple is expected to continue the pricing strategy it followed for its MacBook launches by sacrificing its gross margin. The change will try to soften the price increases for the iPhone 18 generation and preserve shipment volume.
It may also revisit its pricing for older iPhone models that are still being sold, again to offset memory costs.
As for how much this could be, one analyst prediction on July 31 put the iPhone 18 Pro as being $250 to $300 more than the iPhone 17 Pro.
While Apple will feel the pinch due to rising production costs, it's a situation that TrendForce says will be much worse for Android smartphone vendors. A greater squeeze on margins will make it harder for those manufacturers to remain profitable.
To consumers, that could result in even steeper retail price increases than expected for the iPhone.
