Apple confirmed this week that price increases are coming across its product line due to rising memory costs, and now the Wall Street Journal has published its own analysis estimating that the iPhone 18 Pro could start at $1,399.
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Speaking to the Wall Street Journal, Apple CEO Tim Cookacknowledged that the company is not immune to rising memory prices. When asked which products will see price increases and when, Cook said, “We’re still in the process of that,” with more clarification expected with the next iPhone lineup this September.
The price hikes stem from a global shortage of DRAM and NAND flash storage, largely due to AI data centers competing for the same components. Manufacturers including Samsung Electronics and Micron Technologyhave shifted production toward enterprise-scale memory for AI servers, limiting supply for consumer electronics like the iPhone.
Citing analysis from research firm TechInsights, the Wall Street Journal now reports that prices for DRAM and flash storage are projected to roughly quadruple by the fall compared to last year. TechInsights estimates that Apple paid about $39 for 12GB of DRAM in the iPhone 17 Pro, a cost that could rise to $145 in the iPhone 18 Pro. The 256GB level of flash storage, which cost Apple about $13 in the iPhone 17 Pro, could rise to $51.
Overall, TechInsights estimates that Apple's parts and manufacturing costs for the iPhone 17 Pro, excluding memory, are around $530. Combined with DRAM and flash storage, this puts the total estimated cost of materials for the base iPhone 17 Pro at around $582, with the cost of the iPhone 18 Pro expected to increase by 25% to around $726.
TechInsights research suggests that the iPhone 17 Pro, which costs $1,099, has a gross margin of about 47%. To maintain that margin on the iPhone 18 Pro, Apple would have to charge $1,371, but the Wall Street Journal notes that Apple's preference for standardized pricing makes a starting price of $1,299, which represents a 44%.
That estimate doesn’t take into account a new camera system, which supply chain analyst Ming-Chi Kuo says could cost Apple about 50% more than the previous generation. Taking that additional cost into account with the same approach, the Wall Street Journal estimates that Apple could set the starting price of the iPhone 18 Pro at $1,399 or higher.
A starting price in that range would represent a $200 to $300 over the $1,099 iPhone 17 Pro. The iPhone 18 Pro Max will likely start $100 above whatever price Apple sets for the Pro, given the current gap between the two models. The iPhone 18 Pro models are expected to launch alongside the foldable “iPhone Ultra,” which is rumored to have a starting price of around $2,000.
