Memory Price Surge to Lift iPhone 18 Pro BOM Cost 38%, TrendForce Says

Apple's 256GB iPhone 18 Pro is expected to see its bill of materials cost jump roughly 38% year-on-year, propelled by soaring memory and other component prices, according to a new TrendForce study. That makes a retail price increase hard to avoid. Apple may absorb part of the hit by sacrificing some gross margin, aiming to protect shipment volumes and market share. TrendForce's analysis shows that memory as a share of BOM cost in the past two Pro generations has climbed from about 10% a year ago to roughly 34% in Q3 2026, and is projected to exceed 40% in the first half of 2027. Memory has overtaken the application processor and display as the single largest cost item in the iPhone. Android vendors are facing even greater profit pressure, with low-to-mid-range models especially exposed. Some brands may be forced to raise prices significantly or discontinue product lines that carry negative gross margins. Memory prices have risen five to seven times since early 2025. From the second half of 2026 through 2027, global smartphone production is expected to remain under pressure. Apple may also adjust pricing on older models at the time of new product launches, partly to offset the impact of higher memory costs.