Production costs for Apple’s next-generation smartphone, the iPhone 18 Pro, are rising significantly due to the substantial increase in global memory prices. According to current data shared by TrendForce, the device’s production cost has increased by approximately 38% compared to the previous model.

Memory units, which accounted for only 10% of total component costs last year, have increased this share to 34% by the third quarter of 2026. It is expected that memory costs will exceed 40% of total production costs in the first half of 2027.

Production Costs and Pricing Strategy

The five to sevenfold increase in memory prices since the beginning of 2025 is forcing technology manufacturers into a difficult decision-making process. It is suggested that Apple may sacrifice a portion of its gross profit margin to offset this cost increase, following a strategy similar to what it applied to the MacBook series.

The possibility of the company increasing the prices of existing iPhone models to lighten the cost burden is also being considered. TrendForce predicts that Android-based entry and mid-range device manufacturers may implement sharper price increases than Apple, or even discontinue some product lines altogether.

Apple’s Future Plans

Apple updated the prices of its Mac, iPad, Apple TV, HomePod, and Vision Pro product lines in June due to memory costs. While the iPhone series was not affected by these increases at that time, it is considered highly unlikely that the new generation of devices will avoid this situation.

The technology world is focused on the iPhone 18 Pro, iPhone 18 Pro Max, and the company’s first foldable phone, the iPhone Ultra, which are expected to be introduced next month. Whether the increased production costs will be reflected in the end-user price remains a matter of curiosity. Do you think Apple will reflect the increased production costs in the sales prices?