Apple’s upcoming iPhone 18 lineup is expected to become more expensive as the global artificial intelligence boom puts pressure on memory chip supplies. Rising demand for high-performance chips is increasing production costs across the smartphone industry.
Apple CEO Tim Cook confirmed earlier this month that a price increase for the iPhone 18 is likely. He said the main reason is a shortage of RAM and storage components, which are becoming harder to secure.
Reports suggest the iPhone 18 may see a smaller price increase than earlier expected. Instead of a $200 jump, Apple is now expected to raise prices by around $50 for each model.
The iPhone 18 Pro is expected to start at $1,149. This is up from $1,099 for the previous model. Meanwhile, the iPhone 18 Pro Max may start at $1,249, compared to $1,199 for the current version.
Industry experts say the rising costs are linked to the rapid growth of AI technology. Companies worldwide are building large AI data centers, creating huge demand for advanced memory chips.
This demand has caused shortages across the semiconductor market. As a result, chip suppliers are increasing prices for manufacturers.
Apple is one of the largest buyers of memory chips. However, it now faces stronger competition from AI companies spending heavily on hardware.
Reports indicate the memory and storage parts inside the iPhone 18 Pro may cost Apple up to $150 more per unit than the iPhone 17 Pro. Despite this, Apple may absorb part of the cost instead of passing it fully to customers.
To reduce expenses, Apple is expanding the use of its own in-house C-series modem. This could lower dependence on outside suppliers and improve cost control.
The iPhone 18 is also expected to bring a major change in Apple’s launch strategy. The Pro models may arrive in September 2026, alongside Apple’s first foldable iPhone.
In other news read more about iPhone 18 Release Date: Expected Timeline Points to September Launch Event
The standard iPhone 18 and the iPhone Air 2 are expected to launch separately in early 2027. This would mark a major shift in Apple’s traditional release schedule.
