Apple’s next-generation iPhone 18 Pro could see a notable price increase as rising memory costs reshape the economics of smartphone production, according to a new report.
The Information reported Apple’s bill of materials for the iPhone 18 Pro is expected to increase from $582 to $726, while the retail price could rise from $1,099 to an estimated $1,299.
According to the analysis by Shay Boloor, an approximately $144 increase in memory and storage costs is responsible for most of the $200 expected increase in the phone’s retail price as Apple seeks to maintain its profit margins.
Why are Apple product prices rising this year? Memory and storage costs are leading the increase
“The rapid expansion of AI data centers has created an extraordinary surge in demand for memory and storage,” Apple said in a statement. “We have never seen a component price increase this much, this quickly.”
The report also said, “We have shielded our customers from these increases so far, but we have now reached a point where we need to begin raising prices on a number of products, including today’s increases for iPad and Mac. We know this is not welcome news, and we are working tirelessly to find solutions.”
The costs of several key iPhone components, including the processor, camera array, display, and battery, have remained largely unchanged. It attributes this stability to Apple’s long-established relationships with suppliers and its strong negotiating power.
Expected prices for the iPhone 18 Pro, MacBook Neo, MacBook Pro, and iPad lineup
The reported price increases are not limited to the iPhone 18 Pro (with a $1,299 updated price). Apple’s broader product lineup is also expected to become more expensive. According to the report, Apple is also expected to raise prices across several MacBook and iPad models.
| Apple Product | Current Price | Reported New Price | Increase |
|---|---|---|---|
| MacBook Neo (Entry Model) | $599 | $699 | +$100 |
| MacBook Air (512GB) | $1,099 | $1,299 | +$200 |
| MacBook Pro (1TB) | $1,699 | $1,999 | +$300 |
| iPad Air (128GB) | $599 | $749 | +$150 |
| iPad Pro Wi-Fi (256GB) | $999 | $1,199 | +$200 |
The entry-level MacBook Neo could increase from $599 to $699, while the MacBook Air with 512GB of storage may rise from $1,099 to $1,299. The MacBook Pro with 1TB of storage is reportedly set to increase from $1,699 to $1,999. On the iPad side, the iPad Air with 128GB could go from $599 to $749, while the Wi Fi iPad Pro with 256GB may see its starting price climb from $999 to $1,199. These projected increases suggest that higher component costs could affect Apple’s product lineup beyond the iPhone.
The biggest increase instead comes from memory and storage, which have become increasingly expensive as demand for AI-related hardware continues to accelerate.
According to multiple reports, the rapid growth of AI data centers has significantly increased demand for high-bandwidth memory (HBM). As manufacturers dedicate more production capacity to HBM, the supply of conventional DRAM and NAND memory becomes tighter, driving up prices across the broader memory market.
Apple reportedly seeks approval to source memory from CXMT
The report also claims that Apple is seeking approval from U.S. authorities to purchase memory chips from China’s ChangXin Memory Technologies (CXMT), a DRAM manufacturer that has been placed on the Pentagon’s blacklist.
However, the analysis notes that CXMT primarily produces commodity DRAM rather than advanced HBM. Because of that, even if Apple receives approval, it would not solve the shortage of high-bandwidth memory that is being driven by demand from AI servers.
Reportedly, Micron, Samsung, and SK Hynix continue to benefit from strong demand for HBM, which remains in short supply and is largely committed through existing contracts.
Although increased production from CXMT could eventually influence the commodity DRAM market, the report suggests its impact on the premium HBM segment would be limited. It argues that HBM remains the primary growth opportunity for the world’s leading memory manufacturers.
Apple’s reported efforts to secure additional memory supplies highlight the growing pressure that AI-driven demand is placing on the global semiconductor industry, even for one of the world’s largest consumer technology companies.
