A new TrendForce analysis estimates that Apple will pay 38% more for iPhone 18 Pro components than it did for its predecessor. Unsurprisingly, the biggest hike is in the cost of memory, with Apple said to be paying around three times more this year.
However, the firm’s analysis supports my own view that this year’s increase in price will not be as high as some have suggested …
iPhone 18 Pro components to cost 38% more
The cost of producing a new device can be broadly divided into three: components, assembly, and overhead. That latter category covers everything from research and development into the new device through to the cost of marketing campaigns.
The Trendforce report looks specifically at the first of these, otherwise known as the Bill of Materials (BOM).
It says that while memory comprised around 10% of the component cost of an iPhone last year, it’s expected to exceed 40% by next year.
That’s a dramatic shift. Just last year, the display was by far the most expensive component in an iPhone; this year, that will be the memory.
But Apple will likely absorb some of the cost
Two sources recently suggested that the starting price of this year’s iPhone 18 Pro will be $1,399. This latest estimate of Apple’s production costs could indeed support that kind of increase.
However, I argued last week that this is unlikely, with Apple probably choosing to absorb some of the increased cost in order to protect demand.
TrendForce agrees, pointing to Apple’s MacBook price increases. As steep as these were, they didn’t reflect the full increase in Apple’s manufacturing costs.
The company also agrees with Bloomberg that Apple is likely to increase the price of the iPhone 17 Pro ahead of next month’s launch. This morning may prove to be your last opportunity to take Chance’s advice to buy this now.
- iPhone 17 Pro
- Apple products on Amazon Renewed
- Official Apple Store on Amazon
- Discounted AirPods Pro 3
- Wireless CarPlay adapter
- AirTag holders and accessories
- Mac Pro-style Mac mini casing
