iPhone 18 Pro Production Costs Seen Surging Nearly 40%

CALIFORNIA: (News Desk) –  Apple could face a sharp increase in manufacturing costs for its upcoming iPhone 18 Pro, with rising memory prices reportedly pushing the device’s estimated bill of materials significantly above that of its predecessor.

According to an analysis by research firm TrendForce, the estimated bill of materials for the 256GB iPhone 18 Pro could be around 38% higher than that of the comparable iPhone 17 Pro.

The increase could put Apple under pressure to either raise retail prices or accept lower profit margins to keep the new flagship competitive.

Memory Costs Drive Increase

Memory is emerging as the biggest contributor to the expected rise in production costs.

TrendForce estimates that memory represented roughly 10% of the total component cost of a 256GB iPhone Pro a year ago. That share could climb to about 34% by the third quarter of 2026.

If current pricing trends continue, memory could account for more than 40% of the overall component cost during the first half of 2027.

As memory becomes a larger expense, other major components, including the display and application processor, would make up a comparatively smaller share of the overall bill of materials.

Apple Could Absorb Some Costs

Despite the projected increase, Apple may not transfer the entire additional expense to customers.

TrendForce suggested that the company could absorb part of the higher component costs by accepting lower gross margins, similar to an approach reportedly adopted with some recent MacBook products.

Another possibility is that Apple could increase prices for older iPhone models when the new generation arrives. This would allow the company to spread some of the additional costs across its wider product range rather than placing the full burden on the latest models.

Memory Prices Surge

TrendForce said memory prices have risen dramatically since the beginning of 2025, increasing by an estimated five to seven times.

The sharp rise could create particular challenges for smartphone makers competing in lower-priced and mid-range segments. Some Android manufacturers may have to raise prices more aggressively or reconsider the launch of certain models.

Apple has already raised prices across several other product categories this year, including the Mac, iPad, Apple TV, HomePod and Vision Pro. The iPhone lineup was spared at the time, but continuing pressure on memory costs could eventually force the company to reconsider its pricing strategy.

iPhone 18 Lineup Expected Soon

Apple is expected to introduce its next-generation flagship lineup soon, with reports pointing to the iPhone 18 Pro, iPhone 18 Pro Max and a first foldable iPhone, reportedly referred to as the iPhone Ultra.

If memory prices remain elevated, Apple could face difficult decisions over pricing and margins as it prepares the new devices.

Apple has not yet officially confirmed the production costs or retail prices of the upcoming iPhone 18 models.