Apple has announced impending price increases across its product lineup, attributing the hike to rising memory chip costs. The iPhone 18 Pro may see its starting price reach up to $1,399, a significant increase from its predecessor. Apple CEO Tim Cook acknowledged the impact of soaring memory chip prices but did not specify which devices would be affected or when. The increases are largely due to a global shortage of DRAM and NAND flash storage, as AI data centers vie for the same components, leading manufacturers to prioritize enterprise-scale memory chips over consumer electronics.
Research indicates that the cost of DRAM and flash storage for the iPhone 18 Pro could quadruple compared to last year. Apple’s component and manufacturing costs for the iPhone 17 Pro, excluding memory, were estimated at $530, with the total bill of materials reaching approximately $582. For the iPhone 18 Pro, this cost is projected to rise by 25% to around $726.
To maintain its profit margin, Apple would need to set the iPhone 18 Pro’s price at $1,371, but a standardized price of $1,299 is more likely, resulting in a slightly reduced margin. However, a new camera system could further increase costs, potentially pushing the starting price to $1,399 or higher. This would represent a $200 to $300 increase over the iPhone 17 Pro. The iPhone 18 Pro Max is expected to start $100 higher than the Pro model, and the lineup will be joined by the foldable iPhone Ultra, rumored to start at around $2,000.
