iPhone 18 Pro Production Costs Rise 38 Percent

The Bill of Materials for the iPhone 18 Pro 256 GB model is expected to increase by approximately 38 percent year-over-year, according to analysis from TrendForce Corp. This cost surge is driven primarily by memory components, which are projected to rise from 10 percent of the total component cost last year to over 40 percent next year, making memory the most expensive part of the device, surpassing the display.

While some sources suggest a starting retail price of $1,399, TrendForce predicts Apple Inc. will likely absorb a portion of these manufacturing costs to protect shipment volumes and consumer demand. This strategy mirrors the pricing approach used for recent MacBook launches, where the company sacrificed part of its gross margin to avoid a steep price jump that could deter consumers from upgrading.

Chief Executive Officer Tim Cook indicated during an earnings call that the company is not determined to protect margins at all costs, supporting the theory that Apple may prioritize market share over maximum profit per unit for the upcoming model.