The iPhone 18 Is Running Into a Problem That Could End Up Hitting Apple Buyers Exactly Where It Hurts Most

Apple’s iPhone 18 Pro could cost roughly 38 percent more to manufacture than last year’s model, with soaring memory prices driving much of the increase and putting pressure on Apple’s pricing strategy, according to research firm TrendForce.

The firm’s latest analysis puts the bill of materials for the 256GB iPhone 18 Pro well above that of the equivalent iPhone 17 Pro.

Higher retail prices may be unavoidable, although Apple could absorb some of the increase rather than pass the full cost directly to customers, as it has done with recent MacBook price increases.

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Memory Is Reshaping the Cost

Memory accounted for roughly 10 percent of the 256GB iPhone Pro’s total build cost a year ago. That share is expected to reach about 34 percent in the third quarter of 2026 and could exceed 40 percent in the first half of 2027.

That shift is changing the entire cost structure of the phone. Panel and application processor costs, which were previously among the largest components, are expected to fall into the single digits as memory takes up a much larger share of the total. Memory prices have climbed five- to sevenfold since the start of 2025.

Apple could also raise prices on older iPhone models when the new lineup arrives, spreading the higher component costs across the range rather than putting the entire increase on its newest flagship.

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The iPhone Escaped the Last Increase

Apple raised prices across the Mac, iPad, Apple TV, HomePod, and Vision Pro lines in June as memory costs climbed. The iPhone lineup was left out of that round.

That puts the iPhone 18 launch in a different position. Apple is expected to introduce the iPhone 18 Pro and iPhone 18 Pro Max next month, alongside its first foldable iPhone, giving the company a chance to reset prices across the lineup.

Apple has several ways to deal with the higher costs. It could accept lower margins, raise retail prices, or use a combination of both.

Either way, the memory crunch that has already pushed up prices across Apple’s other product lines is becoming harder for the iPhone to avoid.