Apple continues to apply significant markups on storage upgrades for its iPhone lineup, despite recent price increases. According to a Wall Street Journal analysis, the company charges customers approximately three times its own production costs for higher storage tiers on the iPhone 18 Pro. While Apple attributes margin pressure to rising component costs, the WSJ comparison reveals that a 256GB to 1TB upgrade now carries a $600 price difference for consumers, against an estimated Apple cost of $192.
This represents a markup exceeding 300% above the company's direct expenses. The analysis notes that while component costs are indeed higher, the pricing structure remains substantially above Apple's internal cost baseline. The report comes as Apple warned that memory costs will further reduce holiday quarter profit margins, with sequential declines expected despite prior price adjustments.
Critics argue the premiums remain excessive, though Apple maintains the margins reflect complex supply chain dynamics and product integration costs.
Source: 9to5Mac · Summarized by HeadlinesBriefing