Apple signals that price increases are coming as higher DRAM and NAND flash costs affect consumer electronics. Apple CEO Tim Cook, speaking to The Wall Street Journal, acknowledges the company cannot fully absorb rising memory-chip expenses and says more details will follow with the next iPhone lineup expected in September. Multiple reports tie the pressure to a broader global shortage of DRAM and NAND flash, with AI data centers competing for the same components. Research firm TechInsights, as cited by The Wall Street Journal, estimates that memory and storage costs are set to jump sharply by this fall—projected to roughly quadruple versus last year for DRAM and flash components used in iPhone configurations. TechInsights estimates Apple paid about $39 for the 12GB of DRAM in the iPhone 17 Pro, compared with an estimated $145 for the iPhone 18 Pro. It also estimates 256GB flash storage cost rising from about $13 to about $51. Combining TechInsights’ manufacturing cost estimates with the added memory and storage, one projection puts the iPhone 18 Pro’s bill of materials around $726. Based on margin considerations and Apple’s tendency toward standardized pricing, The Wall Street Journal analysis suggests a possible iPhone 18 Pro starting price around $1,299, potentially reaching $1,399 or higher if a rumored higher-cost camera system is included.
iPhone 18 Pro pricing could rise due to memory and storage cost pressures
Apple signals that price increases are coming as higher DRAM and NAND flash costs affect consumer electronics. Apple CEO Tim Cook, speaking to The Wall Street Journal, acknowledges the company cannot...
- Apple CEO Tim Cook says price increases are unavoidable and that Apple is working through which products will be affected and when.
- Reports link higher iPhone costs to DRAM and NAND flash shortages, driven in part by AI data center demand.
- TechInsights, cited by The Wall Street Journal, estimates DRAM cost for the relevant iPhone configuration rises from about $39 (iPhone 17 Pro) to about $145 (iPhone 18 Pro).
- TechInsights, cited by The Wall Street Journal, estimates 256GB flash storage cost rises from about $13 to about $51.
- The Wall Street Journal analysis projects iPhone 18 Pro starting prices could be around $1,299 to as high as $1,399, with iPhone 18 Pro Max priced higher.
The iPhone 18 series is expected to be launched in September. While the Cupertino-based tech giant has yet to announce a launch date for its next-generation flagship smartphones, a seasoned journalist believes they could debut in the second week of September. Separately, a new prediction from a market research firm suggests the upcoming Pro models could become significantly more expensive than their predecessors, in line with Apple’s recent price hikes.
1 month agoThe same memory crisis that pushed Mac and iPad prices up by as much as $300 may be coming for the iPhone 18 Pro, and IDC's new estimate puts it at $200 more.
1 month agoApple CEO Tim Cook recently said that “price increases are unavoidable,” but a new analyst report offers good news for prospective iPhone 18 Pro buyers.
2 months agoThere is growing speculation that Apple may hike the prices of its iPhone 17 lineup as soon as this month, following CEO Tim Cook's recent comments about "unavoidable" price increases. Last week, Cook told The Wall Street Journal that Apple is no longer able to absorb the increased cost of memory and storage chips, both of which are in high demand from AI and neocloud companies as they continue to build more data centers. The scale of the AI infrastructure buildout has prompted debate over whether demand will ultimately justify the hundreds of billions of dollars being invested, but for now it is helping to drive supply constraints across the semiconductor industry. Cook likened the memory shortages to a hundred-year flood. "I've never seen anything like it in any area in over 40 years," he said. Multiple companies have already raised their prices, including Samsung, Microsoft, Sony, and Dell. Apple is now expected to follow suit. Bloomberg's Mark Gurman believes that the timing of Cook's comments likely indicates price hikes are "imminent." Gurman has also linked potential price hikes to Apple's Back to School sale, which is expected to be announced imminently. His thinking is that Apple may tie the two things together as a "buffer." Apple holds a Back to School sale each June, providing teachers and students with free accessories or gift cards when purchasing a Mac or an iPad. The added bonus is in addition to Apple's educational discount. The Back to School sale typically takes place around WWDC, and in three of the last five years, it has started 8 to 10 days after the WWDC keynote. That could mean we see it announced as soon as this week. Either way, Gurman believes the price hikes are "not a fall thing." In other words, they won't be introduced when new iPhone 18 Pro models launch. The price of Apple's current flagship lineup could go up before then, as also suggested over the weekend by Chinese supply chain leaker Ice Universe. Apple's existing iPhone prices are as follows: iPhone 17e: from $599 iPhone 17: from $799 iPhone Air: from $999 iPhone 17 Pro: from $1,099 iPhone 17 Pro Max: from $1,199 Meanwhile, The Wall Street Journal has published its own analysis estimating the iPhone 18 Pro could start as high as $1,399. Prices on iPads and Macs could also go up in the near future.Related Roundup: iPhone 17Buyer's Guide: iPhone 17 (Neutral)Related Forum: iPhoneThis article, "iPhone 17 Prices Could Go Up as Soon as This Month" first appeared on MacRumors.comDiscuss this article in our forums
2 months agoApple's next flagship could come with a noticeably higher price tag, as a global memory shortage continues to push up component costs across the smartphone industry. While Apple has not confirmed any pricing details, CEO Tim Cook acknowledged during a recent earnings call that rising memory prices could affect product pricing going forward. A new estimate from research firm TechInsights, cited by The Wall Street Journal, now offers the clearest early picture yet of what the iPhone 18 Pro might cost.Memory costs have jumped sharplyAccording to the TechInsights report, the memory components that go into the iPhone 18 Pro have become dramatically more expensive over the past year. The 12GB DRAM chip used in the iPhone 17 Pro reportedly cost Apple around $39 (about Rs. 3,350) last year. For the iPhone 18 Pro, the same configuration is now estimated to cost close to $145 (roughly Rs. 12,450), nearly a fourfold jump. Storage costs have followed a similar trajectory, with 256GB of storage reportedly rising from around $13 (Rs. 1,120) to nearly $51 (Rs. 4,380).iPhone 18 Pro Camera Upgrade To Cost Apple 50% More: Here's WhyManufacturing costs set to climbThese component price hikes are expected to filter through into Apple's overall manufacturing bill. TechInsights estimates that building the base 256GB iPhone 17 Pro cost Apple approximately $582 (around Rs. 49,950). The iPhone 18 Pro, by comparison, could cost roughly $726 (about Rs. 62,300) to manufacture, a sizeable increase even before accounting for marketing, logistics and other operational expenses.Apple may need to raise prices to protect marginsApple reportedly posted a gross margin of about 47 percent on the iPhone 17 Pro, which launched at $1,099 in the US. To hold onto that same margin with the iPhone 18 Pro, the company would theoretically need to price the device at around $1,371 (approximately Rs. 1.18 lakh). However, analysts believe Apple is more likely to settle on a slightly more palatable $1,299 (around Rs. 1.11 lakh), a price point that would still leave the company with a healthy gross margin of close to 44 percent.iPhones Are About to Get Expensive, Apple's Tim Cook Says 'It's Unavoidable' A new camera system could push costs even furtherAdding to the pricing pressure, reports suggest the iPhone 18 Pro may debut a new variable-aperture camera system, a feature that could meaningfully raise hardware costs on its own. If this upgraded camera module turns out to be around 50 percent costlier than the current setup, the starting price of the base iPhone 18 Pro could climb as high as $1,399 (nearly Rs. 1.20 lakh). Such an increase would likely ripple across the rest of the lineup too, potentially making the iPhone 18 Pro Max pricier than its predecessor, which currently starts at $1,199 in the US and Rs. 1,31,400 in India.What this could mean for the price in IndiaIf Apple does raise the US starting price of the iPhone 18 Pro from $1,099 to somewhere between $1,299 and $1,399, the effect in India is likely to be amplified further once import duties, GST and Apple's local pricing strategy are factored in. To recall, the iPhone 17 Pro launched in India at Rs. 1,39,900.iPhone 18 Won't Arrive Until 2027, Apple Supply Chain Source SuggestsBased on the projected US pricing, the iPhone 18 Pro could launch anywhere between Rs. 1,59,900 and Rs. 1,74,900 in India. Should Apple go ahead with the rumoured variable-aperture camera system and pass its higher costs on to buyers, the upper end of that range looks more likely. That said, the final India price tag will ultimately hinge on Apple's regional pricing approach and how import or local manufacturing costs evolve closer to launch.
2 months agoApple this week confirmed that price increases are coming across its lineup due to rising memory chip costs, and now The Wall Street Journal has published its own analysis estimating the iPhone 18 Pro could start as high as $1,399. Speaking with The Wall Street Journal, Apple CEO Tim Cook acknowledged that the company is not immune to soaring memory chip costs. Asked which devices would see price increases and when, Cook said, "We're still working through that," with more clarification expected to arrive with the next iPhone lineup this September. The price hikes stem from a global shortage of DRAM and NAND flash storage, driven largely by AI data centers competing for the same components. Manufacturers including Samsung Electronics and Micron Technology have been shifting production toward enterprise-scale memory chips for AI servers, squeezing supply for consumer electronics like the iPhone. Citing analysis from research firm TechInsights, The Wall Street Journal now reports that prices for DRAM and flash storage are projected to roughly quadruple by this fall compared to last year. TechInsights estimates that Apple paid around $39 for the 12GB of DRAM in the iPhone 17 Pro, a cost that could climb to $145 in the iPhone 18 Pro. The 256GB flash storage tier, which cost Apple about $13 in the iPhone 17 Pro, could rise to $51. Overall, TechInsights estimates Apple's component and manufacturing costs for the iPhone 17 Pro excluding memory at roughly $530. Combined with DRAM and flash storage, that puts the total estimated bill of materials for the base iPhone 17 Pro at about $582, with the iPhone 18 Pro's costs projected to rise 25% to around $726. TechInsights' research suggests the $1,099 iPhone 17 Pro carries a gross margin of around 47%. To preserve that margin on the iPhone 18 Pro, Apple would need to charge $1,371, but The Wall Street Journal notes that Apple's preference for standardized pricing makes a $1,299 starting price more likely, working out to a 44% margin. That estimate doesn't factor in a new camera system, which supply chain analyst Ming-Chi Kuo says could cost Apple about 50% more than the previous generation. Accounting for that added cost using the same approach, The Wall Street Journal estimates Apple could set the iPhone 18 Pro's starting price at $1,399 or higher. A starting price in that range would represent a $200 to $300 jump over the $1,099 iPhone 17 Pro. The iPhone 18 Pro Max would likely start $100 above whatever price Apple sets for the Pro, consistent with the current gap between the two models. The iPhone 18 Pro models are expected to launch alongside the foldable "iPhone Ultra," which has been rumored to carry a starting price of around $2,000.Related Roundup: iPhone 18 ProTag: The Wall Street JournalThis article, "Report: iPhone 18 Pro Could Start at $1,399 Amid Price Hikes" first appeared on MacRumors.comDiscuss this article in our forums
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