Cost pressure for iPhone 18 Pro Max: Massive increase in component expenses expected

New estimates regarding production costs for the iPhone 18 Pro Max, which is expected to be Apple's next flagship model, indicate that the company may face challenges regarding pricing.

According to a brief report by Counterpoint Research based on leaks, the component cost of the model could increase by approximately 300 dollars compared to the current iPhone 17 Pro Max.

The report cites global supply shortages in the memory sector as the main reason for the cost increase.

While a significant rise is expected in NAND storage costs, a notable increase is also projected for DRAM. According to Counterpoint's estimates, the cost of NAND and DRAM components alone in the iPhone 18 Pro Max could approach the total cost of the processor, camera, display, and other parts of the iPhone 17 Pro Max.

PACKAGING TECHNOLOGY WILL ALSO INCREASE COSTS

Memory components are not the only item contributing to cost pressure. The new 2 nm architecture processor that Apple is expected to have TSMC manufacture, along with the advanced packaging technology to be used in this processor, are also listed among the factors that could increase component expenses.

Conversely, the report states that a decrease is expected in the costs of display panels and some other components. However, it is noted that these decreases will not be enough to offset the overall cost increase, and that additional costs may arise on the camera side due to the transition to variable aperture main camera technology.

This situation may also be reflected in consumer prices. According to the report, Apple is expected to implement price increases at different rates for various storage options and to reflect an average price hike of 200 dollars on the phones overall. Despite this, it is assessed that the company may have to settle for lower profit margins on the new models.

News Source: 12punto