Apple to Keep iPhone 18 Starting Price Steady Despite Rising Memory Costs

1 week ago 7
DRAM shortages are acceptable to interaction smartphone manufacturers similar Apple successful 2026, but the institution is going to effort to support iPhone 18 prices dependable contempt having to wage much for components, according to Apple expert Ming-Chi Kuo.


Kuo says that Apple negotiates representation prices with suppliers connected a quarterly basis, truthful terms increases are expected successful the 2nd 4th of 2026. The upcoming terms hike volition beryllium akin to the archetypal 4th summation that has already seen Apple paying much for memory. Estimates suggest that prices are up 10 to 25 percent compared to past year.

The higher representation outgo volition interaction the iPhone's gross margins, but Apple is successful a presumption to found deals to get a dependable supply, and it is capable to sorb immoderate of the accrued cost. From Kuo:
For astir non-AI brands, adjacent if you're consenting to wage up, there's nary warrant you'll get the supply. The information that Apple tin fastener successful a woody similar this shows conscionable however overmuch leverage they have.

Higher representation costs volition deed iPhone gross margins. But Apple's playbook is clear: usage the marketplace chaos to their advantage--secure the chips, sorb the costs, and drawback much marketplace share. They'll marque it backmost aboriginal connected the services side.
Apple whitethorn request to code representation terms increases during the January 30 net telephone covering the archetypal fiscal 4th of 2026 (October to December 2025). Kuo expects that Apple volition debar raising prices "as overmuch arsenic possible," and that astatine slightest the starting terms of the ‌iPhone 18‌ models volition beryllium flat.

Apple has antecedently absorbed constituent costs, and was capable to support iPhone 17 pricing comparatively steady. The basal ‌iPhone 17‌ exemplary did not spell up successful terms and inactive starts astatine $799, though Apple did commencement charging $100 much for the iPhone 17 Pro due to the fact that of the caller 256GB minimum storage.

Components different than representation could besides beryllium successful abbreviated proviso successful the coming months, starring to further proviso concatenation issues that could unit terms increases. LPDDR and NAND are presently facing shortages and higher prices due to the fact that of request from the AI industry. Chip manufacturers are prioritizing precocious representation for AI servers implicit the representation utilized successful smartphones, and determination has been speculation that the representation terms summation volition origin smartphone costs to emergence crossed aggregate brands.
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