Component costs for the upcoming iPhone 18 Pro Max could surge by nearly $300, according to an estimate from Counterpoint Research. The report compares the bill of materials for the 1TB iPhone 17 Pro Max to the projected costs for the 18 Pro Max, attributing the significant increase primarily to NAND and DRAM prices. These memory components alone are expected to approach the total bill of materials of the current model, encompassing all its parts.

The jump in costs is driven by market shortages and the inclusion of a new 2nm SoC with advanced packaging. While display and other component costs are anticipated to decrease, the camera system will see a slight increase due to new variable-aperture technology. Apple is reportedly planning to implement varied retail price hikes across different storage configurations to maintain gross profit margins on larger capacity models.

Despite an average retail price increase of $200, Counterpoint Research suggests Apple may still face slimmer profit margins on the iPhone 18 Pro Max. This potential cost escalation could signal higher retail prices for consumers and presents a challenge for Apple in balancing component innovation with profitability.