Apple's iPhone 18 Costs Soar as Memory Prices Skyrocket

Apple's upcoming iPhone 18 Pro may face a significant cost increase due to rising memory prices. TrendForce estimates that the bill of materials for the 256GB iPhone 18 Pro could be about 38% higher in the third quarter than for the comparable model launched a year earlier.

The main culprit behind this price hike is memory, which has seen its costs soar five- to sevenfold since the beginning of 2025. This trend is expected to continue into 2027.

As a result, Apple is facing an uncomfortable decision: whether to pass on the increased costs to customers through higher iPhone prices or absorb part of the increase and accept pressure on its gross margins.