Apple’s iPhone 18 Pro could cost significantly more to manufacture than its predecessor.
That’s according to research firm TrendForce, which estimates that memory costs are becoming a much larger part of the overall expense of building smartphones. The increase could eventually force Apple to raise iPhone prices, though the company may absorb some of the additional cost to avoid putting too much pressure on demand.
TrendForce’s latest analysis puts the bill of materials for the 256GB iPhone 18 Pro roughly 38% higher than the equivalent iPhone 17 Pro. Memory is the main culprit. Prices have climbed dramatically because demand for components used in AI infrastructure continues to put pressure on supply.
The research firm estimates that memory represented around 10% of the total component cost of the equivalent iPhone Pro a year ago. By the third quarter of 2026, that figure is expected to reach roughly 34%. After that, it could potentially climb beyond 40% in the first half of 2027.
That would dramatically change the iPhone’s cost structure. Panel and application processor costs, previously among the two largest individual components, could fall to single-digit percentages of the overall bill of materials. This is simply because memory would account for such a large share.
TrendForce believes Apple could respond in a similar way to its recent MacBook launches. In that case, it absorbed some of the increased costs through lower margins rather than passing the entire increase on to customers. The company could also increase the prices of older iPhone models when the new range arrives, spreading the additional cost across its wider lineup.
Memory prices have reportedly increased five- to sevenfold since the beginning of 2025, creating problems across the smartphone industry. TrendForce expects entry-level and mid-range Android phones to face even steeper price increases. As a result, some manufacturers could potentially drop certain models altogether.
Apple already increased prices across several product categories in June, including Macs, iPads, Apple TV, HomePod and Vision Pro products, amid the same memory shortage. The iPhone lineup avoided that increase. However, TrendForce’s latest figures suggest that could change with the next generation.
Apple is expected to unveil the iPhone 18 Pro, iPhone 18 Pro Max and its first foldable iPhone Ultra next month, so we don’t have long to find out whether those higher production costs ultimately reach consumers.
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