iPhone 18 Pro Max Costs Rise
iPhone 18 Pro Max component costs may rise by nearly $300 due to memory chip shortages and new chip technology, affecting Apple's pricing strategy globally
Key points
- The iPhone 18 Pro Max's bill of materials is expected to increase by nearly $300 compared to the iPhone 17 Pro Max
- NAND flash costs alone may exceed $250, covering half of the iPhone 17 Pro Max's entire component cost
- Apple's shift to a 2nm chip, manufactured on TSMC's N2 process, contributes to the cost increase
- Memory chip shortages, driven by surging demand for AI hardware, are pressuring component pricing
- Display and miscellaneous component costs may decline, partially offsetting memory and chip increases
Apple is facing increased component costs for the upcoming iPhone 18 Pro Max, primarily due to memory chip shortages and new chip technology. The bill of materials for the device is expected to rise by nearly $300 compared to the iPhone 17 Pro Max. This increase is largely attributed to the rising costs of NAND flash and DRAM, with the former exceeding $250 on its own. The shift to a 2nm chip, manufactured on TSMC's N2 process, is also a significant contributor to the cost increase. These changes may impact Apple's pricing strategy for the new iPhone model. The company has recently raised prices on 14 products, citing memory chip shortages as a factor. The increased costs may be partially offset by declining display and miscellaneous component costs.
Sources
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