iPhone 18 Pro Bill of Materials Jumps 38% as Memory Costs Dominate [Report]

The bill of materials for the 256GB iPhone 18 Pro will climb roughly 38 percent year over year, according to new research from TrendForce. Memory is poised to overtake the application processor and display as the largest contributor to the iPhone's bill of materials, a sharp reversal from the years when those two components dominated the cost structure.



A year ago, memory accounted for about 10 percent of the 256GB iPhone Pro's total component cost. TrendForce estimates that share at roughly 34 percent in the third quarter of 2026, with it expected to exceed 40 percent in the first half of 2027. By that point, the panel and application processor are expected to account for only single-digit percentages of total component costs. The report follows Apple CEO Tim Cook's description of the current supply crunch as a "hundred-year flood" for the supply chain. Memory prices have climbed five- to sevenfold since the start of 2025.


TrendForce believes Apple will likely follow the pricing strategy it adopted for recent MacBook launches by absorbing part of the higher production costs rather than passing them entirely to customers. By sacrificing some gross margin, the company could soften retail price increases while preserving shipment volumes. The firm also suggests Apple could raise prices on older iPhone models alongside the new lineup, spreading the cost recovery across the range.

Earlier bill-of-materials estimates from Counterpoint Research had pointed to a nearly $300 jump in the cost of building the iPhone 18 Pro Max. More recently, one analyst predicted the iPhone 18 Pro and Pro Max could each cost $250 to $300 more than their predecessors. TrendForce's latest estimates reinforce earlier reports that Apple could absorb some of the added manufacturing expense rather than passing the full increase on to buyers.

Android vendors are expected to face even greater pressure. The research firm warns that entry-level and mid-range phone makers may have no choice but to impose steeper price increases or discontinue product lines outright as memory costs continue to climb. TrendForce expects persistently high memory prices to keep global smartphone production under downward pressure through 2027.