Apple to raise iPhone 18 Pro Max price as costs climb

Apple is expected to raise prices significantly for its upcoming iPhone 18 Pro Max, with a new analysis indicating the flagship phone's manufacturing costs could surge by nearly $300 compared to its predecessor. The increase is primarily driven by a global memory chip shortage and the adoption of an advanced 2nm processor.

According to an estimate from Counterpoint Research, the bill of materials for a 1TB iPhone 18 Pro Max is projected to be approximately $300 higher than for the equivalent iPhone 17 Pro Max model. The research firm identifies skyrocketing costs for NAND flash storage and DRAM as the largest contributors, with memory expenses alone potentially approaching the total component cost of the previous generation's device. A shift to TSMC's new 2nm manufacturing process for the expected A20 Pro chip is cited as the second-largest factor adding to the expense.

To manage these higher input costs, Apple is widely anticipated to increase retail prices, with analysts projecting an average hike of around $200 across the Pro lineup. However, even with such an increase, Counterpoint suggests Apple may still operate with a slightly lower gross margin per device than it...