Highlights
- Counterpoint Research estimates the iPhone 18 Pro Max will cost about $300 more to manufacture with the 2TB variant being the most expensive to produce.
- Rising NAND and DRAM prices plus Apple’s expected 2nm chipset and advanced packaging are pushing costs higher.
- Apple is likely to apply different price hikes across storage variants to protect margins but overall profit margins may still be lower.
Apple’s upcoming iPhone 18 Pro Max could become more expensive than its predecessor, according to a new report from Counterpoint Research. The research firm has released an estimate of the handset’s bill of materials (BoM) and indicated that the cost of building Apple’s next flagship may increase significantly compared to the current-generation model. Here’s more on that.
iPhone 18 Pro Max Production Cost Tipped to Rise Sharply
Counterpoint Research’s latest analysis compares the estimated bill of materials for the 1TB iPhone 17 Pro Max with the projected component costs of the 1TB iPhone 18 Pro Max.
According to the report, the 1TB iPhone 18 Pro Max is expected to cost around $300 more to manufacture than the equivalent iPhone 17 Pro Max. The increase is expected to be even greater for the 2TB storage variant, which will make it the most expensive model in the lineup to produce.
For comparison, the iPhone 17 Pro Max currently starts at $1,199 for the 256GB model, while the 2TB variant is priced at $1,999. Despite the anticipated retail price increase, the report suggests Apple may still have to accept lower profit margins than it did with the previous generation.
NAND, DRAM and 2nm Chipset Expected to Drive Costs Higher
The report attributes most of the increase in manufacturing costs to rising memory prices. Ongoing component shortages that have affected the industry since late last year are expected to push up the prices of NAND flash storage and DRAM.
Another major factor is said to be Apple’s expected 2nm processor along with its advanced packaging technology, both of which are likely to add considerably to the overall bill of materials.
Counterpoint’s estimates suggest that the combined cost of the NAND and DRAM in the iPhone 18 Pro Max could come close to matching the entire estimated bill of materials of the current iPhone model including the processor, cameras, display, memory, and other major components.
While memory and chipset costs are expected to rise, Counterpoint believes that the cost of the display and several other components could decline. However, the report notes that “camera cost will slightly increase due to the new technology.” This is probably due to the rumoured variable aperture camera feature expected to debut on the iPhone 18 Pro Max.
Apple May Increase Prices Across Storage Variants
According to the report, Apple is likely to adopt different price increases for different storage variants instead of applying a uniform hike across the lineup.
Counterpoint states that “Apple is expected to apply different retail price increases across different storage variants, to avoid the loss of gross profit on large-capacity models.” However, it also added that the company is still expected to operate with lower profit margins on this year’s models even though the average retail price could be close to $200.
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