Report: iPhone 18 Pro Could Start at $1,399 Amid Price Hikes

[MacRumors]

Apple this week confirmed that price increases are coming across its lineup due to rising memory chip costs, and now The Wall Street Journal has published its own analysis estimating the iPhone 18 Pro could start as high as $1,399.

Speaking with The Wall Street Journal, Apple CEO Tim Cook acknowledged that the company is not immune to soaring memory chip costs. Asked which devices would see price increases and when, Cook said, "We're still working through that," with more clarification expected to arrive with the next iPhone lineup this September.

The price hikes stem from a global shortage of DRAM and NAND flash storage, driven largely by AI data centers competing for the same components. Manufacturers including Samsung Electronics and Micron Technology have been shifting production toward enterprise-scale memory chips for AI servers, squeezing supply for consumer electronics like the iPhone.

Citing analysis from research firm TechInsights, The Wall Street Journal now reports that prices for DRAM and flash storage are projected to roughly quadruple by this fall compared to last year. TechInsights estimates that Apple paid around $39 for the 12GB of DRAM in the iPhone 17 Pro, a cost that could climb to $145 in the iPhone 18 Pro. The 256GB flash storage tier, which cost Apple about $13 in the iPhone 17 Pro, could rise to $51.

Overall, TechInsights estimates Apple's component and manufacturing costs for the iPhone 17 Pro excluding memory at roughly $530. Combined with DRAM and flash storage, that puts the total estimated bill of materials for the base iPhone 17 Pro at about $582, with the iPhone 18 Pro's costs projected to rise 25% to around $726.

TechInsights' research suggests the $1,099 iPhone 17 Pro carries a gross margin of around 47%. To preserve that margin on the iPhone 18 Pro, Apple would need to charge $1,371, but The Wall Street Journal notes that Apple's preference for standardized pricing makes a $1,299 starting price more likely, working out to a 44% margin.

That estimate doesn't factor in a new camera system, which supply chain analyst Ming-Chi Kuo says could cost Apple about 50% more than the previous generation. Accounting for that added cost using the same approach, The Wall Street Journal estimates Apple could set the iPhone 18 Pro's starting price at $1,399 or higher.

A starting price in that range would represent a $200 to $300 jump over the $1,099 iPhone 17 Pro. The iPhone 18 Pro Max would likely start $100 above whatever price Apple sets for the Pro, consistent with the current gap between the two models. The iPhone 18 Pro models are expected to launch alongside the foldable "iPhone Ultra," which has been rumored to carry a starting price of around $2,000.

Article Link: Report: iPhone 18 Pro Could Start at $1,399 Amid Price Hikes

 

[Ferrandix]

Honestly, these are strange times. They feel they have no choice but to raise prices,
yet at the same time they'll probably sell much less. Tough times.

 

[MacUserFella]

You can almost smell the $700+ price increase for the iPhone Ultra

 

[hieranonymous]

The AI bubble is insane. A bunch of overvalued unprofitable companies overpaying for commodities in order to outbid concrete, dependable consumer demand. What an absolute scam.

 

[gleepskip]

The AI bubble is insane. A bunch of overvalued unprofitable companies overpaying for commodities in order to outbid concrete, dependable consumer demand. What an absolute scam.

I don't understand the panic over prices. We buy a couple of pieces of hardware a year, if that.

 

[boswald]

The AI bubble is insane. A bunch of overvalued unprofitable companies overpaying for commodities in order to outbid concrete, dependable consumer demand. What an absolute scam.

Then they have the nerve to tell us we need their AI, thus asking for MORE money. One executive bends you over while the other shakes your hand. Sickening.

 

[menist]

This memory shortage is getting ridiculous 🤢

 

[erikkfi]

Good thing for Apple that the modern consumer doesn’t appear to be all that price sensitive.

 

[mnewby]

I was waiting with my 14 Pro for 18 as the camera update seemed interesting but at that cost I'll skip. I keep thinking to switch to standard 17, e or air but I believe the lidar on the pro makes low light and portrait better and allows better editing afterwards. The downside of pro is that it so heavy.

 

[diblasio]

The AI bubble is insane. A bunch of overvalued unprofitable companies overpaying for commodities in order to outbid concrete, dependable consumer demand. What an absolute scam.

You are thinking too small. Any AI model you've seen is the worst it will ever be. The race isn't to get everyone using a chatbot; the race is to figure out how to innovate this thing enough to be inside of all our devices, trained on the data we feed it, utilizing the most energy-efficient method possible. Because whoever gets that first can literally control the way news and the world are presented to us and know what we will do with that information as a result.

Consumer electronics? Not even a blip on the map to these people. There's a bigger prize to be had. Total control of everything is worth burning a hole through the economy, because to whoever holds the keys, the economy won't even matter.

 

[Nyx1]

Ahh yes good luck with that price

 

[musicmachine]

Might get 17pm weekend before update and if price hike isnt too bad return and get 18pm. But if it is what they’re predicting just keep it

 

[joloriquelme]

Glad I got my M5 Pro and my 17 Pro Max this year. Got even other devices for my family. Secured several personal devices for many years I think. We don’t need anything better.

 

[MayaUser]

Only if they bump up the starting ssd to 512 otherwise this is fake news

 

[thefredelement]

The 20th anniversary phone is going to be nuts.

 

[gleepskip]

You are thinking too small. Any AI model you've seen is the worst it will ever be.

Every AI you’ve seen is the worst it will ever be. The real race isn’t chatbots for everyone — it’s advancing computation and intelligence to the level of a million genius experts working 24/7, far beyond the handful of prodigies we get per generation today.

We will unlock massive human potential: health breakthroughs, accelerated science and discovery, far-reaching space exploration, and an era of energy, food, and computational abundance.

 

[dominiongamma]

Glad I got my M5 Pro and my 17 Pro Max this year. Got even other devices for my family. Secured several personal devices for many years I think. We don’t need anything better.

I was holding on to get an iPad Pro, but with the price increase coming I may just pull the trigger

 

[dominiongamma]

Only if they bump up the starting ssd to 512 otherwise this is fake news

There’s nothing fake about this, Tim Cook acknowledge and confirm the price increases are coming

 

[NicosAccount]

Only if they bump up the starting ssd to 512 otherwise this is fake news

fake news? you know youre on a site called macrumors ya?

 

[sunapple]

Great time to keep using the tech you have for as long as possible.

 

[19callum93]

When and if the situation ever improves, do we expect to see price reductions? I highly doubt it… greed 🤑

 

[k1121j]

Well this is to bad I guess I’ll skip another year :-/ I hope memory prices get sorted out

 

[mistymac]

Will be interesting to see if they simply drop the lowest tier of storage again to help make the price increase feel less bad.

 

[itfmac]

Was going to buy a watch this year but if they hike the prices, I can easily wait another year and I would imagine a lot will do the same for phones. My big question is whether to buy a Macbook Neo for my daughter now or wait until next summer by which time the price will have probably gone up but the specs might have too.

 

[woodbine]

You are thinking too small. Any AI model you've seen is the worst it will ever be. The race isn't to get everyone using a chatbot; the race is to figure out how to innovate this thing enough to be inside of all our devices, trained on the data we feed it, utilizing the most energy-efficient method possible. Because whoever gets that first can literally control the way news and the world are presented to us and know what we will do with that information as a result.

Consumer electronics? Not even a blip on the map to these people. There's a bigger prize to be had. Total control of everything is worth burning a hole through the economy, because to whoever holds the keys, the economy won't even matter.

AI will never control my breath! Unless AI clubs me over the head and I enter the 3rd wall....