Azernews.Az

By Alimat Aliyeva

The bill of materials (BOM) cost of Apple’s iPhone 18 Pro with 256 GB of storage is expected to rise by 38% year over year, AzerNEWS reports, citing foreign media.

The main factor behind the increase is the sharp rise in memory prices. TrendForce warned that if memory costs continue to climb, the BOM cost of the iPhone 18 Pro could increase even further in 2027.

According to the research firm, Apple may choose to absorb part of the higher production costs by sacrificing some of its gross margin rather than passing the entire increase on to consumers. This strategy could help the company maintain strong sales and preserve shipment volumes for the iPhone 18 lineup. Apple could also consider increasing the prices of older iPhone models to offset some of the additional costs.

The iPhone 18 Pro is expected to be launched in the third quarter of 2026.

The sharp increase in component costs highlights how closely smartphone prices are tied to global semiconductor and memory markets. Memory chips are used in virtually every modern smartphone, and even relatively small changes in their prices can have a significant impact on manufacturers’ expenses when millions of devices are produced.

If memory prices remain high, Apple may face a difficult choice between raising retail prices, accepting lower profit margins, or adjusting the specifications of future devices. This could make the pricing strategy for the iPhone 18 series particularly important for the company.