Apple and CEO Tim Cook have sounded the alarm concerning the iPhone 18 price hike, with upcoming models expected to become more expensive due to the ongoing DRAM shortage. In short, the trillion-dollar giant says that the situation has become unavoidable, but how large of a difference can customers expect to pay? One research firm might have an answer, but you’re not going to like it.
TechInsights believes that for Apple to maintain its profits, the iPhone 18 Pro needs to become $270 more expensive
As Apple’s memory stockpile begins to dwindle, it’s left with little choice but to ramp up the price of its iPhone 18 series or risk cutting its profits considerably. According to Mike Howard, director of memory markets at TechInsights, before the prices of RAM and storage went out of control, Apple was paying a measly sum of $13 for a 256GB NAND flash and $39 on a 12GB LPDDR5X memory chip.
With the price of storage increased to $51 and with RAM shot up to $145, we’re looking at up to a 292 percent increase that Apple needs to fork over just for these two parts, meaning that selling its iPhone 18 models at the same price isn’t going to be sustainable. In short, the iPhone 18 Pro could launch in the U.S. for $1,399 for the base model, with the iPhone 18 Pro Max likely retailing for $1,499 for the 256GB version.
| Components | Price before shortage | Price after shortage | Price difference in percentage |
|---|---|---|---|
| RAM (12GB LPDDR5X) | $39 | $145 | 272% |
| Storage (256GB) | $13 | $51 | 292% |
It’s obviously not a pretty sight, and we’re confident that Apple did everything in its power to keep these price hikes at bay. Unfortunately, no manufacturer is immune to these shortages, certainly not the Cupertino firm. While consumers may hesitate a little when forking over the premium for the iPhone 18 Pro and iPhone 18 Pro Max, it’ll be interesting how Apple plans on pricing the base model.
According to previous reports, the iPhone 18 is said to ship with 12GB RAM to support the full extent of Siri AI and could be priced at $799, with Apple cutting down costs by using a slightly inferior OLED compared to the newer materials on its more expensive handsets. We’ve also discussed that Apple shouldn’t outright discontinue the iPhone 17 after the iPhone 18’s launch since it continues to generate significant sales momentum, making it contribute more to Apple’s revenue and profits.
About the author: Omar Sohail is a reporter and analyst for Wccftech's mobile section, specializing in the technology and business of the mobile industry. His expertise lies in the intricate hardware supply chain, covering developments in semiconductor manufacturing, chip lithography, and camera sensor technology.
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