Memory Costs Squeeze Apple's iPhone Margins

Apple's iPhone margins are facing pressure due to rising component costs, particularly for memory. According to TrendForce, the cost of production for the iPhone 18 Pro could increase due to these expenses. To mitigate this, Apple may consider accepting lower profit margins or adjusting prices on older iPhone models.

The strain on memory costs is attributed to the fact that CXMT, a key supplier of chipsets, has reached its full capacity. This limited supply is driving up component prices and tightening device availability. The demand for memory continues to rise, exacerbating the issue.