Apple this week confirmed that price increases are coming across its lineup due to rising memory chip costs, and now The Wall Street Journal has published its own analysis estimating the iPhone 18 Pro could start as high as $1,399.
Speaking with *The *Wall Street Journal, Apple CEO Tim Cook acknowledged that the company is not immune to soaring memory chip costs. Asked which devices would see price increases and when, Cook said, "We're still working through that," with more clarification expected to arrive with the next iPhone lineup this September.
The price hikes stem from a global shortage of DRAM and NAND flash storage, driven largely by AI data centers competing for the same components. Manufacturers including Samsung Electronics and Micron Technology have been shifting production toward enterprise-scale memory chips for AI servers, squeezing supply for consumer electronics like the iPhone.
Citing analysis from research firm TechInsights, The Wall Street Journal now reports that prices for DRAM and flash storage are projected to roughly quadruple by this fall compared to last year. TechInsights estimates that Apple paid around $39 for the 12GB of DRAM in the iPhone 17 Pro, a cost that could climb to $145 in the iPhone 18 Pro. The 256GB flash storage tier, which cost Apple about $13 in the iPhone 17 Pro, could rise to $51.
Overall, TechInsights estimates Apple's component and manufacturing costs for the iPhone 17 Pro excluding memory at roughly $530. Combined with DRAM and flash storage, that puts the total estimated bill of materials for the base iPhone 17 Pro at about $582, with the iPhone 18 Pro's costs projected to rise 25% to around $726.
TechInsights' research suggests the $1,099 iPhone 17 Pro carries a gross margin of around 47%. To preserve that margin on the iPhone 18 Pro, Apple would need to charge $1,371, but The Wall Street Journal notes that Apple's preference for standardized pricing makes a $1,299 starting price more likely, working out to a 44% margin.
That estimate doesn't factor in a new camera system, which supply chain analyst Ming-Chi Kuo says could cost Apple about 50% more than the previous generation. Accounting for that added cost using the same approach, The Wall Street Journal estimates Apple could set the iPhone 18 Pro's starting price at $1,399 or higher.
A starting price in that range would represent a $200 to $300 jump over the $1,099 iPhone 17 Pro. The iPhone 18 Pro Max would likely start $100 above whatever price Apple sets for the Pro, consistent with the current gap between the two models. The iPhone 18 Pro models are expected to launch alongside the foldable "iPhone Ultra," which has been rumored to carry a starting price of around $2,000.
This article, "Report: iPhone 18 Pro Could Start at $1,399 Amid Price Hikes" first appeared on MacRumors.com
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