The iPhone 18 Pro is expected to cost Apple nearly 38% more to manufacture than the iPhone 17 Pro, driven by a global memory crisis. TrendForce analysis reveals the bill of materials (BOM) for the iPhone 18 Pro will increase by 38% year-over-year, with memory costs rising from 10% to 34% of total BOM in Q3 2026. This surge follows rising component prices and limited supply, particularly for RAM and SSDs. Apple plans to offset costs by reducing gross margins, similar to its MacBook strategy, to avoid steep retail price hikes.

Analysts predict the iPhone 18 Pro may launch $250-$300 above the iPhone 17 Pro, though Android vendors face harsher margin pressures. The processor and display remain secondary cost drivers compared to memory, which is projected to exceed 40% of BOM by early 2027. Apple may also adjust pricing for older iPhone models to manage expenses.

While consumers will ultimately bear the cost increases, the company aims to preserve shipment volumes through strategic pricing adjustments.