iPhone 18 becomes more expensive due to the increase in the cost of memory: how much will the price increase

Apple, which has kept stable prices for its devices for a long time, is gradually approaching the point where the former strategy stops working. Against the background of the general increase in the price of components, the company is preparing to review the cost of the future iPhone 18 line, and the key factor here is not marketing, but the economy of production.

Pressure from components

According to Morgan Stanley analysts, the price of new smartphones may increase by about $100 compared to the previous generation. The reason is a noticeable increase in the price of memory, primarily DRAM and NAND, which occupy a significant part of the cost of devices.

During its latest financial report, Apple actually made it clear that rising costs are already affecting margins. If earlier the company could partially compensate for the increase in expenses due to its own profit, now this resource is becoming limited. It is becoming increasingly difficult to maintain previous prices without directly affecting financial performance.

The old strategy no longer works

Apple has previously preferred to avoid direct price increases, opting for more flexible methods. For example, the company could change the basic configurations of devices, removing the most affordable versions and leaving more expensive ones on sale. This approach made it possible to formally maintain the starting price of the line while simultaneously increasing the average check.

However, with the cost of memory continuing to rise, this model is starting to break down. When key components become more expensive, configuration maneuvers do not fully offset costs. As a result, a direct increase in prices becomes almost inevitable.

Competitors have already passed this stage

The smartphone market has been moving towards price increases for a long time. Samsung is gradually increasing the prices of the Galaxy series devices, and Chinese manufacturers are facing an increase in the cost of flagships, which is approaching the mark of about 900 dollars per device.

With this background, even after the potential increase in the price of the iPhone 18, Apple can remain competitive. Moreover, the company remains in a relatively advantageous position due to control over supply chains and production scale, although this factor no longer gives the former effect.