iPhone 18 Set to Get More Expensive: Memory Shortages Push Apple Toward Another Price Hike

Consumers hoping for a reprieve from escalating smartphone prices may need to brace themselves for another costly upgrade cycle in 2026. While the dust has yet to settle on the pricing strategies for current models, industry insiders are already sounding the alarm regarding the iPhone 18 Pro and iPhone 18 Pro Max.

Supply chain constraints are threatening to disrupt Apple's manufacturing budget, potentially passing high costs down to the buyer. The core of the issue lies in the volatility of the component market, specifically regarding memory production. As demand for high-performance memory surges across the tech sector, Apple faces a challenging negotiation landscape that could force a revision of its flagship pricing structure.

Memory Supply Crunch Threatens Price Increase

A crucial report has highlighted the significant hurdles Apple is currently navigating regarding global memory shortages. These constraints are creating a scenario where the iPhone 18 Pro and iPhone 18 Pro Max could see a substantial price increase when they debut next year. The technology giant already introduced a price hike to its iPhone 17 series, establishing a trend that premium features command increasingly premium price tags.

Analysts suggest that another £40 ($50) or £80 ($100) bump could be in the pipeline, depending on how well Apple can negotiate with memory suppliers. If the manufacturer cannot secure favourable terms amidst the shortage, the consumer will likely absorb the difference. This potential increase would further cement the 'Pro' models as luxury investments rather than standard consumer electronics.

Apple's First Foldable Flagship Adds to a Pricey 2026

The financial strain on consumers may be compounded by a number of high-end devices Apple intends to bring to market. The company is also planning to launch the iPhone Fold next year alongside the iPhone 18 family, making it the first time that Apple introduces a foldable flagship to the lineup. This introduction marks a pivotal shift in form factor, but it also signals a year of heavy spending for loyalists who want the latest technology.

However, Apple is not entirely at the mercy of external vendors. The company has taken a different route and increased the number of custom chips in its devices.

How Custom Silicon Could Offset Soaring Component Costs

To mitigate the rising costs of memory and other external components, Apple is expanding its proprietary silicon development. For starters, the A20 and A20 Pro will exclusively be used in the iPhone 18 Pro, iPhone 18 Pro Max, iPhone Fold, and the base iPhone 18.

These System-on-Chips (SoCs) represent the bleeding edge of fabrication technology. Keep in mind that these SoCs will leverage TSMC's 2nm process, making them more expensive than the A19 and A19 Pro. Yet, the strategy remains sound financially; since Apple does not have to pay a premium to Qualcomm or MediaTek, it will end up saving money.

Severing Ties with Qualcomm and Broadcom to Save Millions

Apple's most significant financial defence against memory inflation is its transition to in-house connectivity chips. The C1 and C1X 5G modems were introduced to the iPhone 16e and iPhone Air this year, with the C2 said to be in development and will likely be found in the entire iPhone 18 roster. By bringing modem production in-house, Apple eliminates the licensing fees associated with third-party providers.

This next-generation baseband chip is reported to be mass-produced on TSMC's older 4nm process, helping save Apple millions on wafer expenses. According to an earlier estimate, the iPhone 16e's C1 5G modem saves the company £8 ($10) per unit sold. This means that, based on the previous iPhone 16e shipments tally of 22 million units, Apple will be pocketing a whopping £175 million ($220 million) in savings.

This figure does not even account for avoiding the royalty payments to Qualcomm for using its proprietary technology. Furthermore, the strategy extends beyond cellular connectivity. Next, we have the N1 wireless chip, which debuted in the iPhone 17 models.

Whether Apple sticks with the N1 or introduces the N2 for the iPhone 18 launch, it does not need to pay Broadcom or any other company a dime because it has its own solutions ready for deployment. These strategic shifts are detailed in reports from industry and supply chain observers.