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iPhone 18 Pro Production 38% More Expensive, TrendForce Estimates

The main culprit is a drastic rise in memory chip prices, which could inevitably be reflected in the final price for consumers.

Foto: Firmbee na Pixabay
Summary
  • TrendForce estimates that the production costs of the iPhone 18 Pro have increased by 38% compared to the previous model, mainly due to more expensive memory.
  • The share of memory in total component costs will jump from last year's 10% to more than 40% in the first half of 2027.
  • Apple may partially reduce its margin to mitigate the rise in retail prices, but it is expected that the new models will still be more expensive.
  • The announcement of the iPhone 18 Pro, iPhone 18 Pro Max, and the first foldable iPhone is expected next month.

Production of the upcoming iPhone 18 Pro will be nearly 40 percent more expensive for Apple compared to the previous generation, according to a new analysis by research firm TrendForce. The main reason cited is the strong growth in memory prices on the global market.

According to data published by MacRumors, the bill of materials (BOM) for the 256GB model is approximately 38 percent higher compared to the equivalent iPhone 17 Pro. TrendForce warns that higher retail prices will be an inevitable consequence of this trend.

Memory Takes the Lion's Share of Costs

The analysis reveals a dramatic jump in the share of memory in total component costs. A year ago, memory accounted for about 10 percent of the cost of all parts for the iPhone Pro. TrendForce estimates that this share will be approximately 34 percent in the third quarter of 2026 and exceed 40 percent in the first half of 2027.

As a result, the costs of the display and application processor, which were once the two largest items, will fall to single-digit percentages. Memory chip prices, according to TrendForce, have risen five to seven times since the beginning of 2025.

Apple's Strategy: Lower Margin or Higher Price?

TrendForce expects Apple to apply a similar strategy as with recent MacBook launches, giving up part of its gross margin to make the price increase bearable for consumers and protect shipment volumes. It is also suggested that Apple could raise prices of older iPhone models simultaneously with the arrival of the new lineup, thereby spreading the cost recovery across the entire offering.

Analysts predict that Android device manufacturers in the entry-level and mid-range price segments will be forced to raise prices even more sharply than Apple or completely discontinue certain product lines.

Announcement Next Month

Apple already raised prices on the Mac, iPad, Apple TV, HomePod, and Vision Pro lines in June 2026 due to concerns about the same memory price pressure. The iPhone line avoided price increases at that time, but this now seems increasingly unlikely.

Apple is expected to announce the iPhone 18 Pro, iPhone 18 Pro Max, and its first foldable iPhone "Ultra" next month. According to earlier information from MacRumors, the Pro and Pro Max models will retain screen sizes of 6.3 and 6.9 inches, and the new models bring 12 new features, including a smaller Dynamic Island and 5G connectivity via satellite.

FAQ
Why will the iPhone 18 Pro be more expensive to produce? +
The main reason is the drastic rise in memory chip prices on the global market, which have increased five to seven times since the beginning of 2025.
Will only the iPhone 18 Pro become more expensive? +
TrendForce expects that Apple could also raise prices of older iPhone models to more evenly distribute the increased production costs.
When is the iPhone 18 series expected to be unveiled? +
According to information from MacRumors, the announcement of the iPhone 18 Pro, iPhone 18 Pro Max, and the foldable iPhone 'Ultra' is expected next month.
How will Apple mitigate the impact of higher costs on consumers? +
Analysts suggest that Apple could give up part of its gross margin to keep the price increase acceptable and protect sales volume, rather than passing the entire cost increase onto consumers.

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