Apple CEO Tim Cook’s previous warnings about rising memory prices and their impact on product costs appear to be materializing. The Bill of Materials (BOM) for the iPhone 18 Pro is projected to experience a notable price increase, with estimates suggesting the base model could range from $1,299 to $1,399. This is a significant jump from the current iPhone 17 Pro’s 256GB model, which retails for $1,099.
This translates to a potential price increase of 18.2% to 27.3%, with DRAM and NAND being the primary drivers of this escalation. The key questions now are whether such a price hike will be feasible for maintaining sales, or if Apple will absorb some of the cost to keep orders and margins accessible.
iPhone 18 Pro Expected to Be Considerably More Expensive Than Anticipated, Pushing its Price Range to a New Level
According to TechInsights estimates reported by the WSJ, the DRAM in the iPhone 17 Pro costs approximately $39. However, for the iPhone 18 Pro, this cost could escalate to as much as $145. This represents a $106 increase for RAM alone, before factoring in other components such as storage, cameras, processors, displays, and new assembly costs.
NAND flash memory will also contribute to the increased cost. The 256GB storage option, which costs around $13 for the iPhone 17 Pro, could rise to $51 in the iPhone 18 Pro, adding another $38 to the material costs. Combined, the cost for DRAM and NAND would jump from $52 to $196, a $144 increase driven by demand for memory in AI servers.
With these changes, the estimated cost for the base iPhone 18 Pro could reach $726, compared to $582 for the iPhone 17 Pro. This represents a 25% increase in manufacturing cost. If Apple aims to maintain a 47% gross margin, the selling price could be around $1,371. Alternatively, selling it for $1,299 would reduce the gross margin to 44%. This raises the question of whether Apple is willing to accept a 3% reduction in its profit margin by increasing the base price of its flagship model by $200.
A Potential Price Increase of Around 30% in Total
This projection suggests a price of approximately €1,500 with taxes in Europe for the iPhone 18 Pro, and around €1,650 for the Pro Max, if these figures hold true and Apple cannot or chooses not to absorb the costs. This is not the only projection available, and one scenario presents an even more significant increase.
The $1,399 price point emerges if Apple passes on more of the cost to the final price and also includes a more expensive camera. Ming Chi Kuo anticipates that one of the new camera modules could see its cost increase by approximately 50%. This higher-end scenario would also impact versions with more storage and the Pro Max model, which typically have higher starting prices.
The iPhone 17 Pro, the current model from Apple, serves as a direct comparison. Its official price in the US is $1,099 for 256GB, with an estimated cost of around $582, DRAM at $39, and NAND at $13. Based on these figures, the iPhone 18 Pro is likely to become more expensive, not solely due to design, cameras, or new visible features. It appears certain that it will be considerably more costly.
This situation opens up debate: what will be the Manufacturer’s Suggested Retail Price (MSRP) for the base iPhone 18 Pro? Will it be $1,299, $1,399, or a price point higher or lower than these figures? Share your predictions in the comments with your arguments and rationale.
