TrendForce’s latest smartphone industry research reveals that escalating component costs—led by memory—are expected to significantly raise production expenses for Apple’s iPhone 18 series.
For the 256 GB model, the bill of materials (BOM) cost is estimated to increase by about 38% year-over-year, making higher retail prices unavoidable, according to the research group. Apple may offset some of these costs by reducing gross margins to prevent weakening consumer demand, aiming to keep prices manageable, maintain shipment volumes, and grow market share.
A TrendForce analysis of the 256 GB iPhone Pro models over the past two generations shows that memory’s share of total BOM cost has risen dramatically—from around 10% a year ago to approximately 34% in the third quarter of 2026, and is expected to exceed 40% in the first half of 2027.
Driven by soaring memory prices, the research group estimates that the BOM cost of the 256 GB iPhone 18 Pro, scheduled for release in the third quarter of 2026, will be approximately 38% higher than that of its 2025 predecessor. If memory prices continue their upward trajectory, the BOM cost of the iPhone 18 Pro 256 GB is expected to increase even further in 2027.
TrendForce believes Apple is likely to follow the pricing strategy adopted for its recent MacBook launches by sacrificing part of its gross margin to soften price increases for the iPhone 18 lineup, helping preserve shipment volume. The company may also revisit its pricing strategy for older iPhone models, potentially raising their prices alongside the launch of the new generation to partially offset rising memory costs.
The iPhone 18 Pro and iPhone 18 Pro Max are expected to debut in either September or October. A foldable iPhone is anticipated in the October timeframe. The first half of 2027 should see the arrival of a non-Pro iPhone 18, iPhone 18e, and a second generation iPhone Air.
In business and manufacturing, BOM is a comprehensive list of the raw materials, components, parts, and quantities required to build, manufacture, or repair a product, functioning much like a cooking recipe or a shopping list.
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