Amid rising memory costs and supply chain challenges, Apple faces a strategic choice to maintain profit margins by potentially raising prices or adjusting model line-ups in its upcoming iPhone 18 launch.
Apple may have a way to soften the cost shock of its next flagship iPhones, as fresh market analysis suggests the company is weighing lower margins and higher prices on older models to absorb a steep rise in memory costs. TrendForce says the pressure is being driven by a sharp increase in the bill of materials for the iPhone 18 Pro, with component costs for the 256GB version projected to rise by about 38% year on year.
The research firm said memory has become the dominant cost item inside the phone’s parts list. In its analysis of the last two generations of Pro models, memory’s share of the total bill of materials rose from about 10% a year ago to roughly 34% in the third quarter of 2026, and could exceed 40% in the first half of 2027. That shift leaves Apple facing an awkward choice: pass the full increase on to customers or accept slimmer gross margins to keep pricing competitive.
According to TrendForce, Apple is likely to follow a tactic similar to recent MacBook launches, where it absorbed part of the cost pressure rather than forcing the entire increase onto buyers. The company could also use its wider iPhone line-up to rebalance profitability by raising prices on older models when the new generation arrives, offsetting some of the pressure from more expensive memory chips.
The timing is complicated by signs of supply strain across the hardware chain. Tom’s Hardware reported that Apple is confronting DRAM shortages that have left about $1 billion worth of processor wafers awaiting packaging, a delay linked to the memory needed for the A20 Pro and C2 chips. The report said Apple sources most of its DRAM from Micron, with additional supply from SK Hynix and Samsung, but that long-term commitments to other customers have tightened availability.
Pricing speculation is already building. TechTimes reported that Apple chief executive Tim Cook said higher prices across the product range were “unavoidable”, with the iPhone 18 Pro expected to be the first model affected. TechInsights estimated that preserving Apple’s current profit margin could require a price increase of about $270, taking the starting price to roughly $1,371. Other reports have pointed to even larger increases for the top-end iPhone 18 Pro Max, which could face almost $300 in extra build costs because of memory and new chip packaging requirements.
Apple is also expected to reshape its release calendar. The iPhone 18 Pro and iPhone 18 Pro Max are said to arrive between September and October, alongside the company’s first foldable iPhone. The base iPhone 18, iPhone 18e and a second-generation iPhone Air are now expected in the first half of 2027, a split launch schedule that would mark a notable change from Apple’s usual autumn-only pattern.
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