iPhone 18 Pro Costing Apple 38% More to Make, TrendForce Estimates

[TundraKing]

What many don't think about is all that additional money is going somewhere....... Maybe Apple isn't seeing the windfall but the memory makers sure are!!

The revenue windfall going to the "big three" ....Samsung, SL Hynix (both South Korean) and US based Micron are seeing their overall revenue skyrocketing by an unheard of +140% with virtually no increase in costs resulting in profits soaring by well over 3-500%!!!!

This windfall is being sucked out of consumers and end product manufacturers resulting in lower profits for them and less disposable cash and lower value for consumers.... All in all a very bad situation.........

 

[IIGS User]

Our first car phone cost around $2,500 and it was 0.60 cents a minute to use. The services and prices of today are still a way better deal.

I remember my original brick phone I got in the early 90's was not only the size of, well, a brick and a half. The rates were astronomical too. I remember getting something like 200 minutes for like $50/mo in 1994 dollars. Then every min over that was something like you said, .60/min. Not data, no text messages. Calls were short because you got charge for incoming and outgoing minutes. It wasn't a chit the chat proposition. Calls were to the point and "we can talk later".

I really didn't NEED a cell phone in the early 90's it was a waste of my money at the time for sure. It was a lot of fun though and you're right.

The technology is simply a beast in comparison.

 

[PlayUltimate]

So, Apple is now offering ...leasing ...One of the best financial decisions is to buy a 2 year old USED car. Never buy new. And certainly never lease a car . Depreciation is a killer. Maybe its true now for electronics.

It’s always been true with electronics as well. But, the actual cost gap was small enough that it didn’t necessarily make sense to buy old tech.

 

[rymc02]

Our first car phone cost around $2,500 and it was 0.60 cents a minute to use. The services and prices of today are still a way better deal.

Just accepting the fact that something is more expensive and that's OK bc it's still cheaper than 30 years ago is a silly argument. This stuff is suppose to get cheaper, not more expensive. Price should only go up if the technology advances. This is literally backwards for no other reason than "MUST MAKE AI chatbot!"

 

[kemal]

Memory will cost 34% of a phone that will likely cost $300 more? That is a nightmare.

...And my first cell phone in 1993 cost $350, with service at $0.25 per minute.

 

[tridley68]

Cost Apple 38% more cost to customer is 100%🤔

 

[danny1305]

A trillion dollar company should take a loss not is that are struggling in the real world

This mindset is what’s wrong with the world

 

[Kylo83]

This mindset is what’s wrong with the world

Why so a business who is over a trillion can’t take a loss per device and still sell enough to make billions, or do we suffer so they get the same margin

 

[DEMinSoCAL]

Why don't these articles ever state what the actual cost of a 256GB or 512GB NAND chip costs now vs then and let us actually see the cost difference vs how much Apple has jacked up the prices using storage costs as an excuse?

Some companies charge an extra $500 or more just for a bump in storage -- no way the bump in cost is anywhere near that. Profit-taking on the back of a "crisis" I would assume.

My yardstick is to look on Amazon for a 512GB SSD, 2230 format as that will typically have just one NAND chip on it, just like Apple might use, and see what those go for. The price of a retail SSD should cost more as it includes a circuit board, a controller, manufacturing costs and retail boxing and retail costs. RAW SSD NAND chips should be much less. Currently a 512GB 2230 SSD is about $100USD on Amazon.

 

[DEMinSoCAL]

Why so a business who is over a trillion can’t take a loss per device and still sell enough to make billions, or do we suffer so they get the same margin

Until people just stop buying, Apple will continue to raise prices. People need to send a message that prices are too high, leaving Apple with tons of inventory. Problem is, people seemingly will sell a kidney to get a new, shiny Apple product.

 

[The-Real-Deal82]

This mindset is what’s wrong with the world

In that posters defence, we are on the consumer end of the deal. I couldn't care less if Apple make a loss or just less margin than what they are used to. The problem Apple have is judging how much consumers are willing to pay. I am due to upgrade this year and the rumoured prices are pushing me towards not bothering. I mean, that isn't a problem for me personally, but I am sure a certain percentage of iPhone users are along the same way of thinking as me, so that is a problem on the business end of things.

 

[Fumblerooskie]

Why don't these articles ever state what the actual cost of a 256GB or 512GB NAND chip costs now vs then and let us actually see the cost difference vs how much Apple has jacked up the prices using storage costs as an excuse?

Some companies charge an extra $500 or more just for a bump in storage -- no way the bump in cost is anywhere near that. Profit-taking on the back of a "crisis" I would assume.

My yardstick is to look on Amazon for a 512GB SSD, 2230 format as that will typically have just one NAND chip on it, just like Apple might use, and see what those go for. The price of a retail SSD should cost more as it includes a circuit board, a controller, manufacturing costs and retail boxing and retail costs. RAW SSD NAND chips should be much less. Currently a 512GB 2230 SSD is about $100USD on Amazon.

People have always struggled with the concept of value and how it effects pricing. The memory chips being referenced are currently worth more when installed in a data center that has the potential of creating massive revenue (we’ll see) being used to increase efficiency in problem solving. Chips are fungible, and every buyer is in competition with those entities that can use them to make money. It’s simply a supply limited market right now, which has existed since the first humans began to trade.

 

[Fumblerooskie]

Until people just stop buying, Apple will continue to raise prices. People need to send a message that prices are too high, leaving Apple with tons of inventory. Problem is, people seemingly will sell a kidney to get a new, shiny Apple product.

That is a cogent, elegant description of a free market. Well done.

 

[DEMinSoCAL]

People have always struggled with the concept of value and how it effects pricing. The memory chips being referenced are currently worth more when installed in a data center that has the potential of creating massive revenue (we’ll see) being used to increase efficiency in problem solving. Chips are fungible, and every buyer is in competition with those entities that can use them to make money. It’s simply a supply limited market right now, which has existed since the first humans began to trade.

I get that. But the point was, that the companies making retail SSD's have the same problem, and since Apple doesn't say how much they pay for a 512GB NAND chip, you have to look at companies that do advertise the price (at retail) to see. Obviously, if a company can sell a retail SSD for $100 and cover costs of additional parts, manufacturing and still make a profit, that one chip sells for far less.

 

[DEMinSoCAL]

That is a cogent, elegant description of a free market. Well done.

It was more of a reminder to people to speak with their wallets instead of complaining.

 

[ClaraStahlbaum]

Hopefully trading in my 17e to lower a 1 year lease for the Iphone 18 pro will be feasible.

 

[SRQrws]

Incomes are soaring! Inflation is non-existent! Welcome to the "Golden Age."

 

[Johnstrass2]

I don't think many people who use iPhones would see value in them if they were twice their current price point tbh. Nobody is forced to buy an iPhone and I would certainly be looking at my options if the price increases too much. Maybe this strategy from Apple is to encourage its users to keep their devices longer? That is already a growing trend and price increases just help that. I will be keeping my 16 Pro Max at least another year. I am lucky to be able to afford upgrades but I am asking myself the question of why should I pay more to upgrade when I don't have to?

A very good point. With the shortage of ram, it might actually be for people to have people hold their horses for another cycle until Apple figures out better sourcing for its memory.

 

[Apple Mac Daz]

Looks like my 16PM will soldier on for another year

 

[groove-agent]

Yikes. A 33%+ price hike is pretty painful. I won't be upgrading unless this phone is much more functional than my 15 pro. Apple lately has simply been "more of the same thing" with respect to hardware (just slightly faster, slightly better screen, slightly better modem) etc and I think a lot of people will pass on frivolous upgrades from here on.

The iPhone ultra would NOT be "more of the same thing". However, the MacBook Ultra had dropped off of the radar, particularly for this fall. I'll believe Apple can still innovate when/ if the iPhone ultra comes out.

 

[wonderings]

A trillion dollar company should take a loss not is that are struggling in the real world

Why should a company take a loss? This makes zero sense. What really should change is people stop falling for the marketing and realize their iPhone that they have now is fine. You don't need to upgrade, your life will not get better, literally nothing will change other than your bank account shrinking a little.

 

[webkit]

Our first car phone cost around $2,500 and it was 0.60 cents a minute to use. The services and prices of today are still a way better deal.

Yes, and typically there was also a monthly basic service/access fee (around $30/month) on top of whatever minutes were used. Plus, even domestic long distance was still extra (beyond the airtime charge) back then.

Even in 2007, when the iPhone launched, AT&T plans were pricey compared to what's available today.

 

[webkit]

Good. Point . Same with airfares. A RT economy ticket form Boston to Spain in the late 1980's cost about $600. today its about $900 (or, it was before the petroleum shock...)

U.S. airline deregulation starting in the late 1970s helped bring domestic airfare prices down.

 

[Ramchi]

Lesser and lesser iPhones sold, higher and higher the prices go up. As soon as they stopped reporting number of iPhones sold, the prices have been increasing steadily beyond the reach of their own fan base. Only those who are covered by the network plans with a new iPhone every 2-3 years could afford this apart from those who are really mad. Wealthy one’s don’t go after these glass-metal slab for $2000 or $2500. They actually value money, they might as well get Apple stocks instead.

 

[thadoggfather]

Good time

They didn't really get much cheaper. RAM is just eclipsing the percentage.

37.5% less is nothing to scoff at, but agreed for second part.