The cost of storage chips has surged by 230%! The high-end model of iPhone 18 may face a significant price increase

Affected by the continuous surge in DRAM and NAND flash memory costs, the high-end models of the Apple iPhone 18 series may see a significant price increase.

According to investment institutions' analysis, the cost of the 12GB LPDDR5X memory module has skyrocketed from $25-29 at the beginning of 2025 to about $70, an increase of up to 230%. Citigroup, Bank of America, and JP Morgan all agree that even with Apple's strong supply chain control, its role in this industry-wide memory supply crisis is quite limited.

Industry analysis further points out that only the high-storage capacity models in the iPhone 18 series are expected to increase in price by $50-100, while the base storage version is likely to maintain last year's pricing level. This differentiated pricing strategy may lead more consumers to prefer models with entry-level storage configurations.

Memory Cost Surge Erodes Profit Margins

The sharp rise in memory prices is profoundly affecting the cost structure of smartphones. According to analysis, DRAM costs now account for about 20% of the total manufacturing cost. Although Apple has sent executives to negotiate long-term supply agreements with Samsung and SK Hynix, it has not effectively curbed the rising procurement costs, with the current single procurement price of its 12GB LPDDR5X memory module having increased by 230% since the beginning of the year.

In response to the ongoing cost increases, Apple has begun adjusting its supply chain layout to cope with the pressure. Samsung is expected to become the primary DRAM supplier for the iPhone 17 and iPhone 18 series, with a supply share possibly reaching 60-70%. Additionally, due to the use of TSMC's 2nm N2 process, the estimated single cost of Apple's next-generation A20 and A20 Pro chips could reach $280, further increasing the overall cost burden.

Base Version May Become Sales Mainstay

If the high-capacity iPhone 18 models ultimately increase in price by $50-100, the base version is likely to become the most popular choice in the series. The base version is expected to maintain its original price, providing a more stable purchasing option for price-sensitive consumers.

Apple has already increased the starting storage capacity to 256GB in the iPhone 17 series, providing users with more ample space for applications, games, and multimedia content. Although the 512GB version offers a better balance between performance and price, the 256GB model is still expected to contribute the highest shipping share.

It is worth noting that Apple has previously adjusted the pricing for the iPhone 17 series, and consumers who originally planned to skip this generation and wait for the iPhone 18 may now face significantly higher costs if they seek higher configurations