iPhone 18 Pro parts cost seen up 38% on memory surge: TrendForce

Memory costs push iPhone 18 Pro components higher

Apple's upcoming iPhone 18 Pro could carry a significantly heftier price tag for the company itself. Market research firm TrendForce has estimated that the bill of materials (BOM) for the device is roughly 38 percent higher than the previous generation, largely driven by a surge in memory component costs.

The increase, according to TrendForce's analysis, stems primarily from rising DRAM and NAND flash prices. Memory suppliers have been grappling with capacity constraints and strong demand from AI data centres, which has pushed up prices across the semiconductor industry.

For Apple, this means the cost of producing each iPhone 18 Pro unit could climb substantially. The Cupertino-based giant has historically enjoyed healthy margins on its premium devices, but this cost pressure could force some difficult decisions.

Margin squeeze or price hike?

TrendForce suggests Apple may have to sacrifice some margin to sustain shipment volumes. The research firm indicates that the company could absorb the additional costs to keep retail prices competitive, particularly in price-sensitive markets.

Alternatively, Apple could pass on some of the increase to consumers, though this risks dampening demand. The company has not yet commented on pricing for the iPhone 18 series, and official announcements are expected closer to launch.

Sources indicate that Apple is likely to prioritise volume over profitability in the short term, betting on a strong upgrade cycle to offset thinner per-unit margins.

September launch still on track

Despite the cost pressures, reports point to a September launch for the iPhone 18 Pro, driven by sustained consumer demand. Apple is expected to unveil the device alongside other products, including the MacBook Pro M6 and several other devices slated for India.

However, there are concerns about availability at launch. A shortage of DRAM components could limit initial stock of the iPhone 18 Pro, according to industry watchers. Apple's supply chain has been under strain in recent quarters, and memory constraints could exacerbate the situation.

Analysts note that Apple's strong relationships with key suppliers may provide some buffer, but the broader industry-wide memory shortage leaves little room for error.

What this means for buyers

For consumers, the higher BOM could translate into either higher retail prices or reduced promotional discounts. In India, where Apple has been expanding its presence, the iPhone 18 Pro is likely to be priced at a premium, but the company may offer trade-in deals or financing options to soften the blow.

TrendForce's estimate is based on preliminary component pricing, and actual costs could vary depending on final specifications and supply agreements. Apple typically negotiates long-term contracts with memory suppliers, which could mitigate some of the spot-market volatility.

The company is also known for its design efficiency, and it may tweak components or sourcing strategies to offset some of the increase.

As the September launch approaches, all eyes will be on Apple's pricing strategy. If the company holds the line on prices, it could signal confidence in its supply chain and demand outlook. If it raises prices, it may reflect the harsh realities of the memory market.

Industry observers will be watching for official confirmation from Apple, as well as initial teardown reports that provide more detailed BOM estimates. For now, the memory surge remains a key factor shaping the next iPhone's economics.