Apple's next iPhone may cost a lot more to build than the current model. A new report from Counterpoint Research says the parts cost for the 1TB iPhone 18 Pro Max could go up by almost $300 compared to the 1TB iPhone 17 Pro Max. The main reason is the rising price of memory chips.
The spike in cost comes mostly from rising NAND and DRAM expenses. NAND alone could cost more than $250 per unit on the 1TB model. This is close to the total value of a whole older-generation iPhone. Memory chips are in short supply right now. This is because more phones use AI features, and AI servers also need a large amount of memory.
Also Read: SK Hynix Overtakes Samsung as AI Memory Demand Reshapes the Market
The report compares the 12GB RAM, 1TB storage version of both phones. iPhone 18 Pro Max is expected to come with 12GB of RAM, up from 8GB on the current model. That alone adds cost. The new A20 Pro chip is also a factor. It will likely be the first phone chip made on TSMC's new 2nm process, which costs more to produce than the older process.
On the other hand, the screen and some other parts may actually get cheaper. The camera cost may see a hike with the inclusion of a new feature, possibly a variable aperture lens. Apple is also expected to raise prices differently across storage options, so it does not lose profit on the bigger storage models.
iPhone 18 Pro series is expected to launch in September. Prices could go up by around $200 on average, with the top storage models seeing the biggest hike. Apple, however, has not shared any official pricing yet.