Apple is confronting a steep increase in component costs for its upcoming iPhone 18 Pro lineup, driven primarily by soaring memory prices. Research from TrendForce indicates that memory expenses for the 256GB Pro model in the third quarter of 2026 are expected to run nearly 400% higher than a year earlier. This surge is set to push overall production costs higher and prompt retail price adjustments when the new devices are unveiled.

Memory Costs Drive Bill of Materials Higher

The jump in memory pricing has significantly altered the cost structure of the iPhone 18 Pro. TrendForce estimates that the total bill of materials for a 256GB Pro unit has risen approximately 38% compared with the equivalent iPhone 17 Pro model. Memory now accounts for roughly 34% of the overall bill of materials, up from about 10% a year ago, overtaking both the application processor and the display panel as the single largest cost component.

Despite Apple’s efforts to secure lower prices on other parts, those savings are not expected to fully offset the memory increase. As a result, an adjustment to retail pricing is viewed as increasingly necessary while hardware costs remain elevated.

Expected Price Adjustments for iPhone 18 Pro

TrendForce projects that prices for the iPhone 18 Pro and Pro Max will rise by 10% to 20% relative to the prior generation. Some assessments place the increase at roughly $100 above the iPhone 17 Pro starting price, a more moderate figure than earlier analyst estimates that ranged from $250 to $300. Apple is expected to absorb a portion of the higher costs rather than pass the full memory increase through to customers, aiming to limit the impact on demand amid cautious consumer spending.

The company previously raised prices on Mac, iPad, and Apple TV models in June, citing rising memory and storage expenses, but left existing iPhone pricing unchanged at that time. The forthcoming Pro models will mark the first major price adjustment for that segment in two years.

Broader Lineup and Strategic Response

Apple’s first foldable smartphone, referred to as the iPhone 18 Fold, is also expected to debut at the September 9 event. TrendForce anticipates a starting price between $2,099 and $2,299, with the highest-storage configurations potentially exceeding $3,000. The model is positioned as a pricing benchmark for future foldable generations, though early production volumes are expected to remain limited.

The standard iPhone 18 is not expected until the first quarter of 2027 and faces similar cost pressures. In response to elevated hardware expenses, Apple is anticipated to place greater emphasis on higher-margin Services revenue, including software subscriptions and Apple Intelligence cloud offerings, to support overall profitability.

The memory price upcycle, which began in the second half of 2025, stems largely from strong demand linked to artificial intelligence applications and long-term supply commitments by major technology firms. Apple is scheduled to detail final pricing and specifications at its event next week.