With memory costs increasing, analysts estimate Apple’s iPhone 18 Pro could cost almost 40% more to manufacture than its previous generation, the iPhone 17 Pro. 

Memory is the major culprit with rising DRAM and NAND prices driving a large portion of the increase due to demands from AI infrastructure affecting the global memory market.

For Apple, the rising costs have the potential to change how it structures the cost of its iPhone devices. The company could absorb the higher component costs and protect consumer pricing, or push some of the increase onto customers and risk weakening demand.

Analysts believe Apple is likely to absorb some of the increased costs through lower margins, as it did with its recent MacBook launches. It could also potentially spread the additional costs across its range, leading to slightly higher costs across its iPhone lineup.  

The memory shortage has already impacted Apple’s other product categories, with prices hiked across its Macs, iPads, HomePod, Vision Pro and Apple Tv ranges. 

It’s an issue that goes far beyond Apple as cost pressures impact smartphone manufacturers, retailers and distributors across the globe as they head into the critical second half of 2026.

Android phones are also expected to rise, especially entry-level and mid-range smartphones, with some models expected to disappear, as previously reported. 

The new iPhone 18 Pro, iPhone 18 Pro Max and the first Apple foldable phone, the iPhone Ultra are set to be unveiled, along with the pricing strategy, in September.