TrendForce, a tech industry analysis firm, reports that the bill of materials for Apple’s 256GB iPhone 18 Pro is expected to rise by about 38% year over year, making the phone’s manufacturing nearly 1.4 times as expensive as that of the 256GB iPhone 17 Pro. Memory alone could account for about 34% of the iPhone 18 Pro bill of materials in Q3 2026 and more than 40% in H1 2027.
A bill of materials lists the hardware components that go into a phone, such as its memory, processor, display, cameras, battery, and so on. The calculated total on this bill doesn’t represent a phone’s consumer-facing price, however, as it excludes expenses like assembly, testing, logistics, sales, software, research, warranty service, and marketing, which all come before a brand’s effort to actually turn a profit.
It’s important to note, then, that an estimated 38% increase in component costs doesn’t translate into a 38% retail price hike or even a change in Apple’s overall profit margin. What it could very well mean is that if Apple doesn’t significantly increase the price of its phone, it’ll make less profit than before—something major brands typically do not tolerate.
Nonetheless, TrendForce suggests that Apple might raise retail prices by a smaller margin than the increase in component costs to maintain shipments, even if it means lower-than-usual hardware profits. But until the next-generation iPhone lineup is announced, anything’s possible: Apple might raise prices, absorb costs, or both, or use unique approaches like product leasing to ease pressure. It could even embrace dynamic pricing, as Google plans to with the Pixel 11.
