Storage chip costs surge by 230%! High-end iPhone 18 models may see significant price hikes

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Due to the continued surge in DRAM and NAND flash memory costs, the high-end models of Apple’s iPhone 18 series may see a significant price increase.

According to investment institutions, the cost of 12GB LPDDR5X memory modules has risen sharply from $25–$29 at the beginning of 2025 to around $70, an increase of up to 230%. Citi, Bank of America, and JPMorgan all agree that even Apple’s formidable supply chain management has limited effect during this industry-wide memory supply crisis.

Industry analysis further points out that only the high-storage capacity models of the iPhone 18 series are expected to increase in price by $50–$100, while the base storage versions are likely to maintain last year’s pricing. This differentiated pricing strategy is likely to encourage more consumers to opt for entry-level storage models.

Soaring Memory Costs Eroding Profit Margins

The sharp rise in memory prices is profoundly impacting the cost structure of smartphones. Analysis shows that DRAM now accounts for about 20% of total device manufacturing costs. Although Apple previously sent executives to negotiate long-term supply agreements with Samsung and SK Hynix, it failed to effectively curb rising procurement costs, with the unit purchase price of its 12GB LPDDR5X memory module up 230% since the start of the year.

Facing continuously rising costs, Apple has begun to adjust its supply chain layout to cope with the pressure. Samsung is expected to become the main DRAM supplier for the iPhone 17 and iPhone 18 series, possibly accounting for 60–70% of supply. In addition, due to the use of TSMC’s 2nm N2 process, the unit cost of Apple’s next-generation A20 and A20 Pro chips is estimated to be as high as $280, further increasing the total device cost burden.

Base Version May Become Sales Mainstay

If the large-capacity iPhone 18 models eventually see a $50–$100 price increase, the base models are likely to become the most popular choice in the series. The base version is expected to maintain its original price, providing a more stable purchasing option for price-sensitive consumers.

Apple has already increased the starting storage for the iPhone 17 series to 256GB, providing users with more space for apps, games, and multimedia content. Although the 512GB version offers a better balance between performance and price, the 256GB model is expected to account for the highest shipment proportion.

It is worth noting that Apple had previously adjusted the pricing of the iPhone 17 series. Consumers who had originally planned to skip that generation and wait for the iPhone 18 will now likely face significantly higher purchase costs if they opt for higher configurations.

Risk Warning and DisclaimerThe market is risky, and investment needs to be cautious. This article does not constitute personal investment advice, nor does it take into account the unique investment objectives, financial situation, or needs of any individual user. Users should consider whether any opinions, views, or conclusions in this article are suitable for their specific circumstances. Invest accordingly at your own risk.

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