The anticipated production cost of the iPhone 18 Pro is set to rise significantly, with estimates suggesting an increase of 38% compared to the iPhone 17 Pro. This surge is largely attributed to the escalating prices of RAM and internal storage components globally, as reported by TrendForce, a market research firm.

Specifically, the cost of memory chips, which previously accounted for about 10% of the total component cost for the iPhone 17 Pro, is expected to jump to 34% in the third quarter of 2026 and may exceed 40% by the first half of 2027. Traditionally, the A-series processors and displays were the most expensive components, but they now represent only 9% each of the total production cost.

TrendForce indicates that memory chip prices have surged by 5-7 times since early 2025. Despite this, it is believed that Apple will not transfer the entire cost burden to consumers. Instead, the company may implement a slight price increase while accepting a reduction in profit margins to keep prices at a reasonable level, thereby protecting global sales volumes.

To offset the increased costs, Apple might also consider raising prices on older iPhone models currently in circulation. Analyst Jeff Pu from GF Securities has previously predicted that the iPhone 18 Pro and 18 Pro Max could be priced $250 to $300 higher than the current generation.

Moreover, TrendForce warns that the situation for Android phone manufacturers is even more dire, particularly for brands in the budget and mid-range segments, which are facing tighter profit margins. This pressure may force them to adjust retail prices or even discontinue certain product lines to avoid losses.

The ongoing AI boom has led to a depletion of memory resources, with many leading DRAM and HBM manufacturers reportedly sold out of their production until the end of 2027. Companies like Samsung Electronics, Micron, and SanDisk have announced a lack of NAND flash availability, while Kioxia and SK Hynix are finalizing their last contracts. According to Digitimes, the prolonged crisis stems from massive demand from AI data centers, which require high-bandwidth memory (HBM) to continuously supply data to GPUs. As HBM offers high profit margins, manufacturers are focusing their production efforts and investments in this area, consequently reducing their attention to conventional DRAM, leading to shortages for computers, servers, and mobile devices.