iPhone 18 Pro Build Costs Surge 38% Over Memory Prices, Says Report

Apple is facing significant cost increases for its upcoming flagship smartphone. According to market research firm TrendForce on Monday, rising component prices are expected to push the bill of materials for the 256 GB iPhone 18 Pro up by roughly 38% compared to the previous generation.

Memory chip costs are the main driver behind the price surge. Memory prices have jumped five to seven times since early 2025, shifting the biggest expense from traditional components like displays and application processors directly to storage and RAM. Memory accounted for roughly 10% of the phone’s component costs in mid-2025, but that share is projected to jump to 34% by late 2026 and pass 40% in early 2027.

To keep devices affordable and maintain sales volumes, Apple may absorb part of the cost surge by trimming its gross margins. The company could also hike prices on older iPhone models alongside the launch to cushion the financial impact.

The overall smartphone industry faces similar pressure, so this isn’t just something Apple is dealing with. Android manufacturers operating on narrower margins will likely have to pass cost increases along to consumers, leading to higher retail price hikes or potential cancellations of low-margin phone lines.

Basically, at this point, it’s probably best to skip an iPhone upgrade unless you really need it. TrendForce projects global smartphone production will remain constrained through 2027 as higher memory expenses drag down consumer demand.

We already saw Apple jack up prices on the Mac, iPad and more. So far, Apple Watch and iPhone prices haven’t increased yet, but that’s likely to change once September updates are announced.