The component costs for Apple’s upcoming iPhone 18 Pro Max could increase by as much as $300 compared to its predecessor, the iPhone 17 Pro Max, according to Counterpoint Research.
The firm’s estimate was for the 1TB storage model. NAND flash costs on their are said to exceed $250, accounting for roughly half of the iPhone 17 Pro Max’s total estimated components cost. DRAM prices are also on the increase, thanks to a broader memory chip shortage due to ever-increasing demand for AI hardware.
Another large contributor to the upcoming handset’s rising bill of materials is Apple’s expected shift to 2nm chips. The iPhone 18 Pro is rumored to be powered by the A20 Pro, manufactured using TSMC’s N2 process, which is said to carry a steep rise in wafer pricing over the N3P mode used for the current A19 Pro.
Apple does get a bit of a break on some iPhone 18 Pro Max components, thanks to declining costs for displays and other components, although the cost for camera components is expected to rise slightly, due to the use of new technology, like the much-rumored variable-aperture main camera.
Previous reports have indicated that the iPhone 18 Pro’s base price could start as high as $1,399, due to estimates that the DRAM cost per unit could climb from $39 to $145 and its flash storage cost could increase from $13 to $51.
Apple is expected to manage its higher costs by applying retail price increases across multiple storage tiers in place of increasing the costs across the lineup. Despite a suspected average retail price hike of $200, Counterpoint still expects to see Apple settle for a slightly lower margin than it achieved with the iPhone 17 Pro Max.
Apple is expected to launch the iPhone 18 Pro and iPhone 18 Pro Max alongside its first foldable iPhone in September.
