Ing. Calogero Bono
Apple warns investors that rising memory costs are squeezing margins, but an analysis by the Wall Street Journal tells the other half of the story. According to the paper, upgrading the iPhone 18 Pro from 256 GB to 1 TB costs customers $600, against an estimated direct cost of around $192. The markup remains above three times. It matters if you buy devices for yourself or for your company, because the memory crunch is reshaping price lists.
A few terms before we get into the facts. DRAM is working memory, the kind programs use while they run. NAND is flash memory where data is stored long term. QLC is a type of NAND that stores more bits per cell, so it costs less per capacity at high sizes but can be slower in some scenarios. Margin is the difference between selling price and cost. Markup is the percentage added on top of cost.
How much does the memory upgrade on iPhone 18 Pro really cost?
The figures come from an analysis by the Wall Street Journal, picked up by 9to5Mac and Smartworld. With iPhone 17 Pro, going from 256 GB to 1 TB cost $400, while the cost to Apple was estimated at around $42. The markup came close to 1,000%.
With iPhone 18 Pro the same step costs $600. The estimated direct cost has risen to about $192. The calculation of what stays with Apple, about $408, is ours and starts from an estimate, not from a figure the company has disclosed.
What does Apple say about margins?
In its quarterly report on November 2, Apple spoke about memory in stark terms. As Tom's Hardware reports, CEO John Ternus called the memory pricing situation «unprecedented».
Ternus explained that for the December quarter the company expects even higher costs, partly offset by other factors. He recalled the price increases on Macs and iPads at the end of June and on iPhones in September. If you want the financial picture, see our piece on revenue and margins for the fiscal year.
Why are memory prices rising?
According to Tom's Hardware, Samsung has said that memory demand will far exceed supply as AI infrastructure keeps growing. Its memory business head warned that the shortage could last until 2028 and beyond.
SK Hynix says it has locked in more than half of its production capacity for 2027 and 2028 through long-term agreements. Micron speaks of a «considerable time» before the situation improves. Apple, the outlet notes, has already raised prices on several Macs and iPads, with +$400 on the starting price of the MacBook Pro, and has brought its inventories to $11.09 billion.
Is the markup on upgrades an unusual choice?
9to5Mac urges caution. Some criticisms, it says, compare memory that is not comparable, since Mac SSDs are much faster than the cheap cards cited as a benchmark. One reader comments that upgrades bring in more margin to balance the average, but that is an opinion, not a fact.
The fact remains that the 1 TB and larger iPhone 18 Pro models use QLC memory, which is slower than the base versions. Other brands, such as Xiaomi, have also raised prices on smartphones and tablets for the same reason.
Limits to know
The $192 cost is an estimate by the Wall Street Journal, not a figure from Apple, and we read the analysis only through the sources it cites. We do not know its methodology. The margin on the upgrade says nothing about overall margin, which also includes research, marketing and support. Apple has not announced further list price increases, but cost pressure could still change prices in the coming months.
What changes for those who work in digital
If you buy iPhones, Macs or iPads for your company, the memory tier is the line item that weighs most on the budget. It is worth asking whether you really need 1 TB, especially since QLC versions can be slower. The same pressure hits servers and PCs, as the case of Windows 11 on PCs with 8 GB of RAM shows. App developers should optimize memory usage, because high-end devices will cost more and users will keep their current ones longer.
Our take
The picture is less scandalous than it first looks, but it is not that of a company under pressure either. The markup has dropped from nearly 1,000% to just over 200% on the estimated cost, and in absolute terms the price rises. Apple is right that memory costs more, but upgrades remain the part of the price list with the widest margin. The WSJ does not prove wrongdoing, it shows a pricing strategy. It is up to the customer to decide whether it is worth it, and for professionals, not to pay for capacity they will not use.
Frequently asked questions
How much does the 1 TB upgrade cost on iPhone 18 Pro?
It costs $600 compared with the 256 GB model. The same step cost $400 on iPhone 17 Pro. The price figure comes from the sources cited.
How much does Apple spend on that memory?
The Wall Street Journal estimates around $192. It is an outside estimate, not an Apple figure. For iPhone 17 Pro the estimate was about $42.
Why are memory chips getting more expensive?
Because of demand linked to AI infrastructure. According to Samsung, demand exceeds supply and the shortage could last until 2028 and beyond.
Has Apple raised other prices?
Yes, in 2026. Macs and iPads at the end of June and iPhones in September. It has not announced a new round of increases.
Are QLC memories worse?
They are slower than base versions in some scenarios. They are used in the 1 TB and larger iPhone 18 Pro models. The difference depends on how you use the device.
Memory prices, the signals to watch until 2027
Cost pressure does not look set to end soon. What matters are the next price lists and what suppliers say.
- Follow Apple's next quarterly report to see whether product margins still hold.
- Check the statements from Samsung, SK Hynix and Micron on memory supply for 2027.
- If you need to renew company devices, compare price lists before the end of the year.
Sources
- smartworld.it, Apple si lamenta del costo delle memorie, ma ci guadagna ancora tantissimo
- 9to5mac.com, Apple still charging 300% of costs on iPhone storage upgrades, says WSJ
- tomshardware.com, Apple faces unprecedented memory cost increases as RAM prices continue to surge, manufacturing bill climbs by $33 billion
