A new Counterpoint Research report reveals that the bill of materials for the iPhone 18 Pro Max could increase by nearly $300 compared to the iPhone 17 Pro Max. The analysis focuses on the 1TB storage model, where NAND flash costs alone exceed $250, a figure that would have covered roughly half of the entire component cost of the iPhone 17 Pro Max. DRAM pricing is also climbing sharply, driven by a broader memory chip shortage tied to surging demand for AI hardware.
The shift to a 2nm chip contributes significantly to the price hike
The second-largest factor is Apple's expected move to a 2nm processor, the A20 Pro, manufactured on TSMC's N2 process. Wafer pricing for this node carries a steep premium over the current N3P node used for the A19 Pro, and early yield ramp costs add to per-unit chip pricing. While display and other component costs may decline slightly, camera costs are expected to rise modestly due to a variable-aperture main camera rumored for the Pro models. The overall increase is substantial, though partially offset by savings elsewhere.
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Apple already raised prices on 14 products due to memory shortages
The report arrives weeks after Apple increased prices on every Mac, iPad, Apple TV, HomePod, and Vision Pro, attributing the hikes to the same memory chip shortage. The company cited a "supply-demand imbalance" driven by AI data center buildouts as the reason for further increases. iPhone, Apple Watch, and AirPods were left unchanged in that round, but the iPhone 18 Pro lineup is widely expected to be next. The Wall Street Journal previously suggested a starting price of $1,399 for the iPhone 18 Pro, with DRAM costs per unit climbing from $39 to $145 and flash storage from $13 to $51. Apple CEO Tim Cook told the outlet that the company is "still working through" which devices will see price increases.
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Differential price increases across storage tiers to protect margins
To manage higher costs without sacrificing margin entirely, Apple is expected to apply different retail price increases across storage tiers, concentrating the impact on higher-capacity models. Even with an average $200 retail price rise, Counterpoint expects the iPhone 18 Pro Max to land at a slightly lower gross margin than the iPhone 17 Pro Max achieved in 2025. The iPhone 18 Pro and Pro Max are expected to launch this fall alongside Apple's first foldable iPhone. For a comparison with competing devices, see the head-to-head where the Motorola Razr Fold beats the Pixel 10 Pro Fold on design and battery. For further reading on the global chip shortage, check Wikipedia's overview.
Source: https://www.macrumors.com/2026/07/10/iphone-18-pro-max-costs-could-rise
