Counterpoint Research estimates the bill of materials for the iPhone 18 Pro Max 1TB model will climb nearly $300 over its predecessor. NAND flash alone exceeds $250 — roughly half the iPhone 17 Pro Max's total component cost — while DRAM prices also surge. Both face pressure from a memory chip shortage driven by AI data center demand.

Apple's move to a 2nm process for the A20 Pro chip, fabricated on TSMC's N2 node, ranks as the second-largest cost driver. Wafer pricing carries a steep premium over the current N3P node, and early yield ramp adds per-unit expense. Display and miscellaneous component costs may decline, partially offsetting increases, while camera costs rise slightly, likely tied to a rumored variable-aperture main sensor.

The report follows Apple's recent price hikes across 14 products — Macs, iPads, Apple TV, HomePods, and Vision Pro — attributed to the same memory supply crunch. The iPhone 18 Pro lineup is widely expected next. The Wall Street Journal reported a potential $1,399 starting price, with DRAM costs jumping from $39 to $145 per unit and flash from $13 to $51. IDC projects a $200 increase for Pro models; Weibo sources suggest an 11% hike in China.

Apple may stagger retail increases across storage tiers rather than apply a flat hike, concentrating impact on higher-capacity models. Even with a $200 average price rise, Counterpoint forecasts a slightly lower gross margin than the iPhone 17 Pro Max achieved in 2025. The lineup launches fall 2026 alongside Apple's first foldable iPhone.