Apple has announced upcoming price increases across its product lineup due to rising memory chip costs. The iPhone 18 Pro is projected to start at $1,399, reflecting the increased cost of components, especially DRAM and NAND flash storage, which are expected to quadruple in price by fall 2026. Analyst estimates suggest Apple may need to maintain a gross margin of around 44% on the iPhone 18 Pro, compared to 47% on the previous model. The increased costs are attributed to competition for memory chips from AI data centers and improvements in camera technology, anticipated to raise production costs significantly.

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

Friday June 19, 2026 4:03 am PDT by Hartley Charlton

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.

iPhone 18 Pro Deep Red Feature

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.

Related Roundup: iPhone 18 Pro

Tag: The Wall Street Journal

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Top Rated Comments

hieranonymous

11 hours ago at 04:07 am

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.

Score: 78 Votes ( Like | Disagree)

boswald

11 hours ago at 04:12 am

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.

Score: 29 Votes ( Like | Disagree)

diblasio

11 hours ago at 04:16 am

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.

Score: 23 Votes ( Like | Disagree)

sunapple

11 hours ago at 04:28 am

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

Score: 18 Votes ( Like | Disagree)

menist

11 hours ago at 04:13 am

This memory shortage is getting ridiculous 🤢

Score: 16 Votes ( Like | Disagree)

MacUserFella

11 hours ago at 04:05 am

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