Why iPhone 18 Pro Max might cost up to $300 more

The cost of the components needed to produce the iPhone 18 Pro Max will rise up to 80%, according to a new cost analysis by a market research firm. The sharp increase results from the global shortage in memory chips that’s been in headlines so often recently.

A huge jump in Apple’s bill of materials raises questions about how much of these additional costs Apple will pass on to buyers. It potentially could push up the cost of the iPhone 18 Pro Max by as much as $300.

iPhone 18 Pro Max price could jump as Apple’s costs soar

The shortage of DRAM and NAND flash memory is severe enough to get dubbed “RAMageddon.” Amid the AI boom, chipmakers shifted production toward high-margin memory used in AI servers and data centers, squeezing supplies available for smartphones and other consumer devices. The resulting price surge has forced electronics manufacturers, including Apple, to pay significantly more for RAM and storage.

To discover what this means for the iPhone 18 Pro Max, Counterpoint Research compared the manufacturing cost of a fully configured iPhone 17 Pro Max with a projected bill of materials for Apple’s next flagship model.

The report estimates the most expensive iPhone 18 Pro Max configuration — featuring 12GB of RAM and 1TB of storage — could cost Apple almost $300 more to build.

In the iPhone 17 Pro Max, the cost of the DRAM and NAND chips — also known as Unified Memory and the SSD — are a relatively minor part of the BOM. With the upcoming model, they account for nearly half the component cost.

Other component cost increases

Leaks coming from Apple and its suppliers indicate that the iPhone 18 Pro Max will use a faster A20 Pro processor built on TSMC’s cutting-edge 2nm manufacturing process, as well as a new variable aperture camera system. Counterpoint Research predicts that both will add to the BoM.

On the other hand, “Display and other parts may cost less than its predecessor,” notes Counterpoint analyst Shenghao Bai.

Don’t expect iPhone 18 Pro Max price to soar

In the past, Apple has absorbed some of the cost of rising component costs. That means how much of Apple’s BOM increase resulting from RAMageddon will be passed on to consumers can only be estimated at this point.

First off, note that Counterpoint’s prediction of an approximate $300 increase in the BOM applies to the version with 1TB of storage, with the NAND chip making up roughly a quarter of the cost of the device. Other configurations with less storage capacity won’t see such dramatic rises in the BOM.

Still, Counterpoint analysts estimate that the average increase in cost for an iPhone 18 Pro Max will be about $200. That would put the starting price around $1,399 in the United States.

“The iPhone 18 Pro Max is still expected to deliver a slightly lower gross margin than the iPhone 17 Pro Max in 2025,” said Counterpoint’s Shenghao Bai.

It’s iPhone’s turn for a price hike

RAMageddon isn’t a “cash grab” by Apple. It’s a problem the company must deal with. It can even be considered a crisis.

“DRAM and NAND/SSD prices have risen sharply in recent months, and the availability of these components is limited,” noted IDC.

“Conventional DRAM contract prices are projected to rise by 58–63% QoQ,” said TrendForce.

In June, Apple raised prices it charges for Mac, iPad and other product lines, citing higher memory and storage costs. At that time, there was no change in the cost of an iPhone model. But it’s only a matter of time.

The iPhone is Apple’s most important product, generating the majority of the company’s revenue. Counterpoint’s analysis shows the extremely high increases in memory costs Apple must now pay aren’t something it can shrug off. It’s been “eating” them until now, but that’s surely going to stop with the iPhone 18 Pro Max… as well as the iPhone 18 Pro and iPhone Ultra expected to launch in September.

Even so, RAMageddon is likely cutting into Apple’s profit margins, and the inescapable price hikes may well reduce demand for its products. In short, iPhone price increases are just as bad for Apple as they are for its customers.