Apple to sacrifice margins to sustain shipments as iPhone 18 Pro costs jumps 40pc, TrendForce says

TrendForce's latest smartphone industry research reveals that escalating component costs , led by memory, are expected to significantly raise production expenses for Apple's next iPhone 18 series, driven by soaring memory prices.

An analysis of the 256 GB iPhone Pro models over the past two generations shows that memory's share of total bill of materials (BOM) cost has risen dramatically, from around 10 percent a year ago to approximately 34 percent in the third quarter of 2026, and is expected to exceed 40 percent in the first half of 2027, according to TrendForce.

Driven by soaring memory prices, the research company estimates that the BOM cost of the 256 GB iPhone 18 Pro, scheduled for release in the third quarter of 2026, will be approximately 38 percent higher than that of its 2025 model, making higher retail prices unavoidable.

If memory prices continue their upward trends, the BOM cost of the iPhone 18 Pro 256 GB is expected to increase even further in 2027, the research added.

TrendForce believes Apple is likely to follow the pricing strategy adopted for its recent MacBook launches by sacrificing part of its gross margin to soften price increases for the iPhone 18 lineup, helping preserve shipment volume. 

Apple may also revisit its pricing strategy for older iPhone models, potentially raising their prices alongside the launch of the new generation to partially offset rising memory costs, TrendForce noted.

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