The iPhone 18 Pro Max’s bill of materials is expected to increase by almost $300 over the iPhone 17 Pro Max, according to a new analysis from Counterpoint Research.
The estimate covers the 1TB storage model. NAND flash costs for the device alone would exceed $250, a figure that would cover about half of the total estimated component cost of the iPhone 17 Pro Max. DRAM prices are also rising sharply, with both components facing pressure from a broader memory chip shortage linked to growing demand for AI hardware.
Apple’s expected move to a 2nm chip is described as the second contributor to the cost increase. The iPhone 18 Pro is rumored to launch the A20 Pro, manufactured using TSMC’s N2 process, which would carry a large wafer price premium over the current N3P node used for the A19 Pro. The costs of increasing early yield on a new process node are also typically added to the unit price of the chips.
Counterpoint says that costs for display and other miscellaneous components could actually decrease compared to the iPhone 17 Pro Max, partly offsetting increases in memory and chips. Camera costs are expected to increase slightly, which the company attributes to the new technology, likely a reference to the variable-aperture main camera being rumored for the Pro models.
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The report comes weeks after Apple raised prices on 14 products, including all Macs and iPads, as well as the Apple TV, HomePod, HomePod mini and Vision Pro. Apple attributed the increases to the same memory chip shortage cited in the Counterpoint report, saying the “imbalance between supply and demand” driven by the construction of AI data centers had made further price increases necessary. Prices for the iPhone, Apple Watch, and AirPods have remained unchanged during this round of hikes, but the iPhone 18 Pro line is widely expected to be next.
The Wall Street Journal previously reported that the iPhone 18 Pro could start as high as $1,399, citing estimates that Apple’s DRAM cost per unit could rise from $39 to $145 and its flash storage cost from $13 to $51. Apple CEO Tim Cook told the outlet that the company is “still working” on which devices will see price increases. Separately, IDC has estimated a $200 increase for the Pro and Pro Max models specifically, while leaks on Weibo have separately suggested that Apple could increase its Chinese starting price for the range by around 11%.
To manage higher costs without giving up margin entirely, Apple would have to implement different retail price increases across storage tiers rather than a uniform increase across the entire line, concentrating the impact on higher-capacity models. Even with an average retail price increase of $200, Counterpoint still expects the iPhone 18 Pro Max to land with a slightly lower gross margin than the iPhone 17 Pro Max achieved in 2025.
The iPhone 18 Pro and iPhone 18 Pro Max are expected to launch alongside Apple’s first foldable iPhone in the fall.
