The iPhone 18 Pro could cost $1,299 when it launches in September. That’s roughly $270 more than what comparable models have cost in the past, and the culprit isn’t some fancy new feature. It’s the chips inside.
Apple CEO Tim Cook told the Wall Street Journal on June 17 that “price increases are unavoidable,” describing the current memory chip situation as “unsustainable.” The global shortage of DRAM and NAND chips, fueled by an insatiable appetite from AI companies hoarding components for their data centers, has pushed Apple into a corner that even its legendary supply chain wizardry can’t fully escape.
The numbers behind the squeeze
DRAM prices have surged up to 63%. NAND prices, the flash memory that stores your photos, apps, and everything else, have climbed as much as 75%. Both spikes are driven largely by AI hyperscalers, think the Microsofts and Googles of the world, who are buying up memory chips at a pace that leaves everyone else fighting over scraps.
TechInsights estimates that the component cost for a base iPhone 18 Pro could land around $726. For context, the equivalent cost for the iPhone 17 Pro was roughly $582. That’s a $144 jump in raw materials alone, before Apple even thinks about assembly, software, marketing, or the retail experience.
