TrendForce: The material cost of the iPhone 18 Pro is expected to increase by nearly 40%, with the memory accounting for 34%

According to the latest research by TrendForce, driven by rising prices of components such as memory, the material cost of the 256GB iPhone 18 Pro is expected to increase by about 38% year-on-year, making a retail price increase unavoidable. Apple may ease the extent of the price increase by sacrificing some gross margin to maintain shipment volume and market share. Analysis shows that the proportion of memory in the BOM cost of the last two generations of Pro models has risen from about 10% a year ago to about 34% in Q3 2026, and it is expected to exceed 40% in the first half of 2027. Memory has become the largest single cost item for the iPhone, replacing the traditional dominance of application processors and displays.

TrendForce points out that Android manufacturers are facing greater profit pressure, especially mid-range and low-end models, with some brands potentially forced to significantly raise prices or discontinue loss-making product lines. Since early 2025, memory prices have increased by 5 to 7 times, and it is expected that global smartphone production will continue to be under pressure from the second half of 2026 to 2027. Apple may also adjust the pricing of older models in sync with the launch of new products to partially offset the impact of rising memory costs.