--- title: "iPhone 18 Pro production costs to surge nearly 40% due to memory crisis: Apple sacrifices profit for market share" description: "📉 **iPhone 18 Pro production costs to rise by 38%**: Memory prices have skyrocketed, and the share of memory in the smartphone's cost has reached 34%. Apple is prepared to sacrifice profit to avoid raising prices for users, while Android manufacturers will likely pass costs on to buyers. 📱🚫 A global decline in the smartphone market is expected in 2027." date: 2026-08-10T23:31:03.000Z lang: en url: https://xab.info/en/posts/iphone-18-pro-production-costs-surge-40-memory-crisis-apple-sacrifices-profit tags: [apple, iphone-18, semiconductors, memory-prices, trendforce, android, smartphone-market] publisher: "XAB.info" --- # iPhone 18 Pro production costs to surge nearly 40% due to memory crisis: Apple sacrifices profit for market share ![Glowing Apple logo on the store facade at night, symbolizing the rise in iPhone 18 Pro production costs due to memory crisis](https://xab.info/media/2026/08/11/sebestoimost-iphone-18-pro-vzletit-na-40-iz-za-krisisa-pamyati/sebestoimost-iphone-18-pro-vzletit-na-40-iz-za-krisisa-pamyati-1.webp) ## 🎯 Key Points - The production cost of the iPhone 18 Pro (256 GB) will increase by 38% compared to 2025. - The share of memory in the iPhone Pro cost structure has reached 34% and could exceed 40% in 2027. - Apple plans to maintain prices by sacrificing part of its profit, unlike Android competitors. - The smartphone market expects a global production contraction in the second half of 2026. Amid the global technological crisis of 2026, Apple is facing unprecedented pressure on its supply chains. According to the latest estimates from the analytical agency TrendForce, published in August 2026, the cost of components for the flagship iPhone 18 Pro with 256 GB of memory will increase by approximately 38% compared to its 2025 predecessor. This sharp spike is driven by the rapid rise in semiconductor memory prices, threatening the traditional margin models of electronics manufacturers. ### Fundamental shift in cost structure An analysis of the Bill of Materials (BOM) for iPhone Pro models over the last two generations reveals dramatic changes. While the share of memory in the total component cost was around 10% just a year ago, by the third quarter of 2026, this figure reached a critical level of 34%. Experts predict that in the first half of 2027, the share of memory will exceed 40% of the total device cost. This marks a historical turning point: whereas pricing was previously dictated by the cost of the processor and display, memory has now become the dominant factor determining the economics of smartphone production. ### Apple's strategy: maintaining volume at the cost of profit In response to these challenges, Apple is likely to adjust its pricing policy. Analysts believe the company will follow the strategy applied during the launch of updated MacBook models, sacrificing some gross profit to prevent a sharp spike in retail prices for the iPhone 18 lineup. Such a move is necessary to maintain shipment volumes and customer loyalty. Furthermore, Apple may revise prices for older models, increasing their cost upon the release of the new generation to partially offset losses from the increased component costs in new devices. ### Catastrophic consequences for the Android segment If even Apple, which boasts the highest profitability in the industry, is forced to make concessions, the situation looks critical for Android smartphone manufacturers. Margins in this segment are already lower, leaving little room for maneuver. It is likely that Android device vendors will be forced to pass the bulk of the rising costs on to consumers, leading to a sharper rise in retail prices than expected in the Apple lineup. The initial and mid-range segments will be hit particularly hard, where low margins make many models unprofitable. ### Contradictory data While major TrendForce reports indicate a 38% increase in production costs for the base 256 GB configuration, some sources, including data on models with 1 TB of memory, report even more complex issues. Specifically, it is noted that models with maximum memory capacity are not only becoming significantly more expensive to produce but may also face performance limitations due to a shortage of high-quality memory chips. This creates a divergence in forecasts: some analysts expect a reduction in the supply of top-tier models, while others predict their complete removal from the lineup in favor of more affordable configurations. ### Global smartphone market contraction According to TrendForce estimates, the constant rise in memory prices will lead to a decline in demand in the smartphone market in the second half of 2026 and throughout 2027. Manufacturers unable to offset rising costs may be forced to discontinue entire lines of devices. Given that memory prices have risen five to seven times since the beginning of 2025, the industry is on the brink of massive consolidation, where only companies that can adapt to the new economic reality will survive. ## 🔍 Fact-Check Verification - [TrendForce Says iPhone 18 Pro BOM Cost Could Rise 38%](https://www.malaysianwireless.com/2026/08/trendforce-iphone-18-pro-bom-cost/) - Подтверждает рост себестоимости на 38% и влияние цен на память. - [iPhone 18 Pro could cost Apple 38% more to make as memory prices surge: TrendForce](https://www.firstpost.com/tech/iphone-18-pro-could-cost-apple-38-more-to-make-as-memory-prices-surge-trendforce-14037285.html) - Дублирует данные о росте BOM и стратегических решениях Apple. - [iPhone 18 Pro 1TB costs more and runs slower as memory hits record 34% of build cost](https://www.msn.com/en-us/technology/cloud-computing/iphone-18-pro-1tb-costs-more-and-runs-slower-as-memory-hits-record-34-of-build-cost/ar-AA29MgVw) - Дополняет информацию о доле памяти в 34% и проблемах с моделями 1ТБ. - [The iPhone 18 Pro will cost Apple 38% more in parts – but there’s some good news](https://9to5mac.com/2026/08/10/the-iphone-18-pro-will-cost-apple-38-more-in-parts-but-theres-some-good-news/) - Подтверждает стратегию Apple по сохранению цен за счет прибыли. ## ❓ FAQ ### Q: Why has the production cost of the iPhone 18 Pro increased? **A:** The main reason is the sharp rise in semiconductor memory prices, which now account for up to 34% of the total component cost of the smartphone. ### Q: Will Apple raise prices on the iPhone 18? **A:** Most likely not. Analysts expect Apple to sacrifice part of its gross profit to maintain retail prices and sales volumes. ### Q: How will this affect Android smartphones? **A:** Android manufacturers will likely be forced to pass the cost increase on to consumers, leading to a sharper price hike for their devices compared to the iPhone.