Apple Users Face Major iPhone 18 Shock
Apple faces a potential margin squeeze as the bill of materials for the upcoming iPhone 18 Pro is expected to rise by 38% due to surging memory costs. Analysts suggest Apple may need to choose between raising consumer prices or sacrificing hardware margins to maintain market share.
Why it matters
Rising component costs for flagship devices reflect broader inflationary pressures in the tech hardware sector that could impact consumer pricing strategies.
Apple Users Face Major iPhone 18 Shock Moz Farooque ACCA Mon 10 August 2026 at 3:28 pm GMT-4 2 min read AAPL -1.53% This article first appeared on GuruFocus .
Apple ( NASDAQ:AAPL ) could face a sharper iPhone margin squeeze than investors expected, with TrendForce estimating that the bill of materials for the 256GB iPhone 18 Pro could jump roughly 38% from the comparable model launched in 2025. The surge, driven largely by soaring memory prices, raises a difficult choice for Apple: absorb more of the increase through margins or risk slowing demand with higher handset prices.
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TrendForce expects memory costs to keep rising into 2027, meaning the cost increase could widen further by the time the iPhone 18 series reaches consumers.
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