What the iPhone price increase is and why it’s happening
The iPhone price increase refers to Apple passing sharply higher memory and storage component costs on to customers, as surging demand for DRAM and NAND chips makes current pricing unsustainable for future iPhone models, especially the Pro series. In an interview with The Wall Street Journal, Tim Cook said price hikes across Apple’s lineup are now “unavoidable” because memory chip prices have risen too far for the company to keep absorbing them. The Wall Street Journal’s analysis, cited in multiple reports, suggests that maintaining Apple’s usual margins could lift the starting price of an iPhone 18 Pro model to USD 1,299 (approx. RM6,000). Those same reports say memory and storage that cost about USD 50 (approx. RM230) in the iPhone 17 Pro are projected to reach around USD 200 (approx. RM920) for the iPhone 18 Pro, marking a fourfold jump in this component alone.
Inside the unprecedented DRAM shortage and its impact
At the heart of the problem is an unprecedented DRAM shortage impact that Apple’s CEO has likened to a “hundred-year flood.” Huge cloud and AI players such as Google, Microsoft, Meta, and Amazon are buying enormous amounts of high‑bandwidth memory for their data centers. According to coverage of the Wall Street Journal interview, prices for both DRAM and NAND have roughly quadrupled since last year, as suppliers like Samsung, SK Hynix, and Micron prioritize lucrative AI contracts. That leaves less capacity for consumer devices, squeezing smartphone makers that depend on stable memory chip costs. Cook says Apple has tried to shield buyers by absorbing increases, but the situation has now become “unsustainable.” Even if supply improves later, contracts locked in today at high prices will keep pressure on iPhone price increases over the next several product cycles.
How DRAM and storage costs could add USD 270 to iPhone Pro models
For the iPhone 18 Pro, the DRAM shortage impact is not abstract; it shows up directly in the bill of materials. TechInsights estimates that passing on higher memory and storage costs while preserving Apple’s gross margins could tack about USD 270 (approx. RM1,240) onto a future iPhone Pro model. Reports referencing supply chain data state that the memory and storage package which cost Apple around USD 50 (approx. RM230) in the iPhone 17 Pro is now projected to cost roughly USD 200 (approx. RM920) in the iPhone 18 Pro. In other words, this one component cluster could be four times more expensive. When you add this to other rising parts and assembly costs, it becomes clear why smartphone pricing trends are moving upward, with premium devices hit hardest because they rely on larger, faster, and more expensive memory configurations.
Beyond memory: hardware upgrades and broader smartphone pricing trends
Memory chip costs are only part of the story. The iPhone 18 Pro line is expected to ship with a 48MP ultra‑large main sensor with variable aperture, a cutting‑edge 2nm chip, high‑speed memory, and a significantly larger battery. All of these upgrades increase the base cost of each device before Apple even adds its margin. Earlier talk suggested the standard iPhone 18 might gain 12GB of RAM without a higher launch price, but Cook’s comments about unavoidable increases make that scenario far less likely. Macs and iPads are also under pressure from the same component shortages, hinting at wider price changes across Apple’s portfolio. For buyers tracking smartphone pricing trends, this cycle shows how advances in AI and data centers can indirectly raise the cost of the phone in your pocket.
