
According to the rumors, Apple is expected to raise the prices of its iPhones by $100. This includes the iPhone 18 Pro and Pro Max. Naturally, there are some who might gripe about the price hike, but if anything, it feels like we got off cheap with a $100 price bump. This is because Apple could be paying much more for the iPhone 18 memory but are absorbing some of those costs.
iPhone 18 memory prices are up 400%
According to a recent TrendForce report, it claims that Apple is paying 400% more for the memory in the iPhone 18 series. We don’t have the specific numbers since Apple never shares them (nor would they), but a 400% increase is a huge jump. For some context, back in 2024, it was estimated that the LPDDR5X RAM in the iPhone 16 Pro cost $17. Given that we are facing a memory crunch right now, $17 for the iPhone 18 memory seems like wishful thinking.
Plus, let’s not forget that with every iPhone, Apple introduces upgrades that would probably cost it more too. This includes the A20 Pro chipset which is built on TSMC’s most advanced 2nm process. So that will probably cost a pretty penny too.
However, the TrendForce report claims that Apple won’t be passing the full costs to customers. Instead, they plan to absorb some of it and hope that it locks customers into its ecosystem and boost its Services (subscriptions like iCloud, Apple Music, Apple One, and so on) revenue.
Seeking alternative partners
In the past, Apple used its buying power to negotiate lower costs with manufacturers. However, with the AI boom, Apple is seemingly failing to get better rates. There have been reports that Apple is looking to diversify its partners in the memory space. They might even turn to Chinese memory suppliers to help ease its supply chain.
However, there are political considerations if Apple goes down that route. These companies are blacklisted by the US government. While Apple can legally work with them, there could be some pushback and backlash. In any case, it’s less than a week to go before we get the official pricing for Apple’s new iPhones.
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