Apple Absorbs Memory Costs with Smaller iPhone Price Hike

Apple has raised the starting prices of its top-of-the-line iPhones by $100. The iPhone 18 Pro now starts at $1,199 and the Pro Max at $1,299. Analysts had predicted a bigger price hike due to rising memory costs.

TrendForce modeled a jump of $150 to $200 in component costs, citing nearly 400% higher memory prices for the 256GB model compared to last year. However, Apple's new prices are lower than expected.

While the smaller hike may be seen as good news for buyers and bad news for shareholders, it actually comes from Apple absorbing part of its increased component costs rather than passing them on to consumers.

The company's memory problem is not a demand issue but a cost one. Memory prices are expected to continue rising beyond September, with Apple paying even higher costs in the current quarter.