Apple, alongside its CEO Tim Cook, has raised concerns over an impending price surge for the iPhone 18 series, primarily driven by a persistent scarcity of DRAM components.
The tech behemoth has indicated that this predicament may be unavoidable, prompting speculation regarding the potential price increments consumers might encounter. One research entity suggests a rather unwelcome answer.
TechInsights Projects a $270 Increase for iPhone 18 Pro to Sustain Apple’s Profit Margins
As Apple’s reserves of memory dwindled, the company faces mounting pressure to escalate the prices of the iPhone 18 series or risk substantial profit reduction.
Mike Howard, director of memory markets at TechInsights, elucidates that prior to the catastrophic inflation in RAM and storage costs, Apple procured 256GB NAND flash for a mere $13 and 12GB LPDDR5X memory for just $39.
In stark contrast, the current market prices have surged to $51 for storage and $145 for RAM, translating to an eye-watering 292 percent hike in costs solely for these critical components.
Consequently, a sustainable pricing model at prior rates seems untenable. It is projected that the base model of the iPhone 18 Pro may debut in the U.S. at a price of approximately $1,399, while the iPhone 18 Pro Max could see a starting price near $1,499 for the 256GB variant.
| Components | Price Before Shortage | Price After Shortage | Percentage Increase |
|---|---|---|---|
| RAM (12GB LPDDR5X) | $39 | $145 | 272% |
| Storage (256GB) | $13 | $51 | 292% |
The stark reality is palpable, and it is clear that Apple has exerted considerable efforts to stave off such price escalations.
Regrettably, no manufacturer, including the esteemed Cupertino-based firm, remains insulated from these global shortages.
While consumers may exhibit reluctance when parting with significant sums for the iPhone 18 Pro and iPhone 18 Pro Max, the approach Apple adopts for its base model pricing remains to be seen.
Previous analyses suggest that the iPhone 18 may include 12GB of RAM to fully harness Siri’s artificial intelligence capabilities and could be priced at $799.
It appears Apple aims to optimize costs by employing a slightly downgraded OLED display compared to the superior materials found in its pricier models.
Moreover, it is anticipated that Apple will refrain from discontinuing the iPhone 17 post-launch of the iPhone 18, as the former continues to demonstrate robust sales and significantly contributes to the company’s overall revenue and profit margins.
Source link: Wccftech.com.
