Apple has reportedly paid four-times as much for the memory components required to build the iPhone 18 Pro smartphone, which could have drastic consequences for the costs when Apple launches the handset next week.
Research firm TrendForce says the 400% premium is compared to just one year ago and, despite Apple’s efforts to lower costs elsewhere, the price hikes are “increasingly unavoidable.” Whether the full cost of the increase will be passed onto consumers remains to be seen, but previous reporting has suggested the iPhone 18 Pro could cost up to $300 more than its predecessor. Others reports have suggested a gentler $100 increase.
The report (via 9to5Mac) says: “For the 256GB Pro model, memory costs in 3Q26 are expected to be nearly 400% higher than a year earlier. Despite Apple’s efforts to negotiate lower prices for other components, these savings are unlikely to offset the resulting pressure on overall BOM costs. An increase in retail prices appears increasingly unavoidable while hardware costs remain elevated.”
While Apple raised prices for Mac, iPad and Apple TV products earlier this summer, it held off on increasing the asking price for its number one product. That will seemingly have to change this year.
Apple faces the dilemma of raising the prices to maintain profitability or risking sinking sales that could ultimately affect the company’s stock price and wipe hundreds of billions off the value of the company. Consumers who have previously upgraded every couple of years may reconsider if prices are significantly higher this year. Especially considering the other pressures on the cost of living.
Apple may hope the recently-announced lease-to-buy Apple Upgrade program might help it continue to shift units of new generations to make up for these losses.
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