TL; DR (tap to expand)
- Apple’s CEO told the Wall Street Journal that price increases are “unavoidable” due to sharply rising memory chip costs.
- The WSJ estimates a ~$270 increase on Pro models to maintain margins, leading to a $1,299 starting price.
- Earlier rumors of the standard iPhone 18 avoiding a price increase look unlikely now.
Apple CEO Tim Cook has confirmed that price increases across the company’s products are “unavoidable” due to sharply rising costs of memory and storage chips. In an exclusive interview with The Wall Street Journal, Cook stated that the situation has become “unsustainable” despite Apple’s efforts to absorb higher costs and protect customers.
The comments come amid a global memory chip crunch driven by surging AI-related demand, which has significantly increased component costs for the upcoming iPhone 18 series. A new analysis by The Wall Street Journal shows how these pressures could push the starting price of the iPhone 18 Pro to $1,299.
Cost Pressures Behind the Potential Hike
According to the WSJ reporting by Nicole Nguyen and Rolfe Winkler, memory chip costs for the iPhone 18 Pro have risen dramatically. Research firm TechInsights estimates that passing on these higher costs while maintaining Apple’s typical gross profit margins would add approximately $270 to the price of the next iPhone Pro model.
The memory and storage components that cost Apple about $50 in the iPhone 17 Pro are now projected to cost around $200 in the iPhone 18 Pro, according to supply chain data referenced in coverage of the cost surge.
iPhone 18 Pro Hardware Upgrades Adding to Costs
The iPhone 18 Pro series will include several premium upgrades that further contribute to higher bill-of-materials costs:
- A 48MP ultra-large main sensor with variable aperture
- A 2nm chip
- High-speed memory
- A significantly larger battery
These hardware enhancements, combined with elevated memory prices, are driving the expected price adjustment for the Pro models.
Earlier Rumor on Base iPhone 18 Now Appears Unlikely
Just prior to these developments, there were reports suggesting the base iPhone 18 might receive 12GB of RAM (up from 8GB) without a price increase to better support advanced on-device AI features. However, Tim Cook’s direct acknowledgment of broad and unavoidable cost pressures makes it increasingly unlikely that Apple will fully absorb the increases across the entire lineup, including non-Pro models.
Timeline and Outlook
The iPhone 18 series is expected to launch in the usual September window. The combination of advanced hardware and significantly higher component costs positions the Pro models for a meaningful price increase, with the WSJ math pointing to a potential starting price of $1,299 for the iPhone 18 Pro. Basically, Apple is saying that price hikes are necessary to maintain its already massive profit margins.
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