iPhone 18 Pro Bill of Materials Expected to Rise Nearly 40%
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TrendForce estimates the 256GB iPhone 18 Pro's bill of materials will jump roughly 38% year-on-year, driven by surging memory prices; Apple will likely absorb most of the hit through margin compression, but pressure on the entry-level market is nearing a breaking point.
Materials cost up nearly 40% — where is the money going?
TrendForce estimates the 256GB iPhone 18 Pro's BOM (bill of materials — the total cost of components inside the device) in Q3 2026 will be about 38% higher than the equivalent model launched in Q3 2025.
The biggest driver is memory: prices have risen five- to seven-fold since early 2025.
This means → memory chips alone now consume a far larger share of each handset's budget than before.
TrendForce adds that memory prices are expected to keep climbing into 2027, which could widen the cost gap further.
Will Apple pass the cost on to consumers?
Drawing on Apple's recent handling of the new MacBook lineup, TrendForce believes Apple is more likely to compress its own gross margin rather than raise prices sharply.
In plain terms = Apple would rather earn less per unit to keep the iPhone 18 Pro's price hike minimal, protecting shipment volumes and market share.
TrendForce also flags that Apple may raise prices on older-generation models at the same time, using legacy-device markups to cushion the new-model cost pressure.
Why is the entry-level market most at risk?
TrendForce's report states: "Pressure is especially acute in the entry-level and mid-range segments, where margins are already razor-thin and there is almost no room to absorb higher costs."
This means → not every brand has Apple's profit buffer to "absorb the blow" — many mid- and low-end makers face only two options: raise prices sharply, or discontinue product lines already running at negative margins.
This reflects a reality broader than Apple: surging memory costs are forcing a cost restructuring across the entire smartphone industry.
What to watch next?
Two verification points matter most: ① whether Apple meaningfully raises the iPhone 18 Pro's retail price; ② whether Apple simultaneously marks up older-generation models.
If Apple holds the line and does not raise prices, it signals that market share outweighs short-term margin — intensifying pricing pressure on rivals.
If legacy models see price increases, this reflects that memory-cost pressure has grown too large for Apple to offset through new-product margin alone.
Content is for reference only, not financial advice.