Memory prices across the globe are hiking, and it wouldn’t be long before Apple implements them too in its products. The company can take the damage to some extent, as it has previously done, thanks to its tight supply chain optimizations, but that too won’t last long. In a recent interview, Apple CEO Tim Cook confirmed that its products might soon face price hikes due to the RAM shortage. In a following report, the WSJ states that the iPhone 18 Pro could cost more than $1,399.
iPhone 18 Pro Could Be Priced At A Whopping $1,399 Or Higher Thanks To RAM Shortage And More Expensive Component Costs
As mentioned, Apple kept the price of the iPhone mostly the same in the past decade, starting from the iPhone X. However, ever since the RAM shortage fiasco, rumors of a massive price hike have been heard across the industry. While Tim Cook did not offer any additional details on the timing and scale of the price increase, he also didn’t mention what products will be affected.
“Unfortunately, price increases are unavoidable,” he said. “We’re doing our best to mitigate the huge increases that are being passed to us, and we’ve been trying to shield our customers from the increases, but the situation has become unsustainable.”
The Wall Street Journal created the estimates for the iPhone price hike based on its insights from research firm TechInsights, suggesting that the iPhone 18 Pro could come in at $1,299, but it is very likely that the digit would surpass the $1,399 mark. For reference, it is a $200 to $300 increase in price compared to the price of the iPhone 17 Pro.
While Apple doesn’t report the gross profit margins on individual products, the TechInsights research suggests the margin on the $1,099 iPhone 17 Pro was a tidy 47 percent. To maintain that profit margin for the iPhone 18 Pro, based on estimated costs, the company would have to charge $1,371. Because the company likes standardized pricing, the starting price tag would more likely be $1,299, yielding a 44 percent gross profit.
The iPhone 18 Pro is expected to bring major changes to the camera system, which means that component costs are slated to increase as well. Since the iPhone 18 Pro was already destined for a price hike, the RAM shortage would be the cherry on top. According to industry analyst Ming-Chi Kuo, the camera system will also cost Apple 50 percent more than the previous models. This is just the camera, we could see higher chip costs as well in the future.
If the smaller iPhone 18 Pro starts at $1,299 or $1,399, you can expect the Pro Max price to be an additional $100. These estimates are only for the iPhone, and if RAM shortage is the reason, we can expect the same outcome for other products as well. Let us know in the comments what you think about the iPhone 18 Pro price hike.
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