Apple iPhone 18 Pro Max to get more expensive due to $300 higher production costs

Analysts at J.P. Morgan recently stated that the production costs of the most affordable Apple iPhone 18 Pro are only increasing by 5% to $540, compared to the 256 GB iPhone 17 Pro ($1,429 on Amazon), as Apple is expected to counter rising DRAM and NAND prices through various cost-saving measures.

According to the latest analysis by Counterpoint Research production costs for models with more storage, however, are rising dramatically. For the Apple iPhone 18 Pro Max with 1 TB of storage, production costs are expected to be a substantial $300 higher than for the iPhone 17 Pro Max. For the top-of-the-line model with 2 TB of storage, the difference is expected to be even greater. Counterpoint Research estimates that, in addition to RAM and flash storage, the Apple A20 Pro and the improved cameras are contributing to these higher production costs, while most other components, including the display, are expected to cost slightly less than last year.

To offset these cost increases, Apple is expected to raise the price of the iPhone 18 Pro Max by an average of $200, with models featuring more storage set to see even steeper price increases. To put this in perspective: Currently, the Apple iPhone 17 Pro Max with 256 GB of storage costs $1,199, while Apple charges $1,999 for the top-of-the-line model with 2 TB of storage. Despite the price increase, Apple is expected to have to settle for smaller profit margins than in the previous year.