Rising memory costs drive up iPhone production costs
Memory price increases are expected to add significantly to the cost of building Apple's next flagship iPhone. According to analysts at TrendForce, the bill of materials (BOM) for the 256GB iPhone 18 Pro is projected to jump by roughly 38 percent year-on-year, driven primarily by soaring memory prices. Memory accounted for about 10 percent of the BOM a year ago, but by the third quarter of 2026 that share had climbed to approximately 34 percent and is expected to surpass 40 percent in the first half of 2027. Memory has now overtaken the application processor and the display as the single most expensive component in the device.
Apple reportedly preparing price hikes
Bloomberg's Mark Gurman reports that Apple is preparing to raise iPhone prices, with the main question being how much it will charge for its next models. According to Gurman, the price increase "remains inevitable" given the same memory and silicon shortages affecting the rest of the industry. The new pricing is widely expected to be announced at Apple's annual September event, alongside the iPhone 18 lineup.
Competitors' moves set the stage
Samsung and Google have already raised prices on their latest smartphones by about $100 each. Google's Pixel 11 starts at $899, the Pixel 11 Pro at $1,099, and the Pixel 11 Pro XL at $1,299. Google has confirmed that rapidly rising memory costs forced the price adjustments. Samsung's Galaxy S26 starts at $899.99 with 256GB of storage, with the S26 Plus priced at $1,099.99.
Apple has reportedly been watching these moves closely. If it matches the roughly $100 increase, the iPhone 18 Pro would start at around $1,199, up from the iPhone 17 Pro's $1,099. Gurman suggests such a bump would be "fairly modest" given the severity of the memory crunch and would indicate Apple is absorbing some of the added costs itself.
Apple's recent price hikes on other products
Apple has already raised prices across several major product lines. According to Gurman, Macs and iPads rose by about 23 percent on average about two months ago. The MacBook Air became $200 more expensive, the Mac Studio saw a $500 increase, and the iPad Air cost $150 more. Apple has also warned of pressure on its gross margins this quarter, a factor that could influence its pricing decisions.
Speculation on the scale of the increase
The $1,199 figure represents a more moderate scenario than some earlier predictions. IDC revised its expectations after Apple's sharp Mac and iPad price increases, suggesting the iPhone 18 Pro and Pro Max could climb by around $200, which would put the smaller Pro at approximately $1,299. Other reports have floated prices as high as $1,399. Separate supply-chain analysis has highlighted dramatic increases in DRAM and NAND costs heading into the next iPhone generation.
Upgrade program and unconfirmed details
Apple is also reportedly working on a new Upgrade subscription program that would let customers spread the cost of an iPhone through monthly payments. The company has not confirmed any price increase for the iPhone 18 Pro, and the final price could still change before launch. A foldable iPhone Ultra has also been mentioned as an upcoming product in some reports, though details remain scarce.
As the September event approaches, the key question for consumers is whether Apple will follow its competitors' lead with a modest $100 increase or opt for a larger jump. The answer will depend on how much of the rising memory costs Apple decides to pass on to customers.