The new iPhone 18 Pro Max will cost Apple nearly 300 dollars more and not just due to memory issues

An analysis by Counterpoint highlights the increase in component costs for smartphones, linked to the memory crisis that manufacturers must contend with. The case analyzed is that of the iPhone 18 Pro Max.

According to analysts' estimates, the new high-end model will see an increase in component costs (Bill of Materials) of nearly 300 dollars for the 1 TB version. Clearly, these increases will translate into an inevitable price hike for iPhones, with Apple, for now, opting to raise prices only for other products, without changing the prices of its smartphones.

Skyrocketing Prices for Components

As evident from the chart below, the costs of DRAM and NAND memories have significantly increased, reaching about half the cost of the components of the iPhone 17 Pro Max. There is also a substantial increase in the chip, with the new A20 Pro utilizing TSMC's 2 nm production process. The cost of cameras is also on the rise due to the introduction of a variable aperture system.

According to Counterpoint, "with an average retail price increase of 200 dollars, it is expected that the iPhone 18 Pro Max in 2025 will still generate a slightly lower gross margin compared to the iPhone 17 Pro Max."

Therefore, Apple's flagship could cost much more compared to the previous generation, especially regarding the versions with ample storage. The debut, let's remember, is expected in September. Consequently, further details regarding specifications and, especially, prices should emerge shortly.