iPhone 18 Pro Max BoM Could Jump Nearly $300 Due to Memory, 2nm Chip [Report]

Manufacturing costs for Apple's upcoming iPhone 18 Pro Max are projected to climb sharply, driven primarily by soaring memory prices and the transition to a 2-nanometer processor.



The Bill of Materials (BoM) for the 1TB iPhone 18 Pro Max is projected to increase by nearly $300 compared with its predecessor, according to estimates from Counterpoint Research. The firm says the ongoing global memory shortage is the largest factor behind the increase, driving sharp gains in both DRAM and NAND pricing. The trend also aligns with recent comments from CEO Tim Cook that AI-driven demand for memory components is increasing costs across the industry and making hardware price increases more difficult to avoid.


Another major factor is Apple's next-generation flagship processor, widely expected to be the A20 Pro. The chip is rumored to use TSMC's 2-nanometer manufacturing process alongside a redesigned WMCM packaging architecture. Camera expenses are also likely to increase as Apple adopts new imaging technology, which could include a variable aperture camera, according to previous supply chain reports. Counterpoint notes that lower display pricing and savings on several other components could help mitigate those increases.

To address the higher manufacturing costs, Counterpoint expects Apple to apply different retail price increases across storage tiers rather than implementing a uniform increase across the lineup. The strategy is intended to help preserve profitability on higher-capacity models. Even with an average retail price increase of $200, however, the iPhone 18 Pro Max is still projected to deliver a slightly lower gross margin than its predecessor.