Apple faces 400% memory cost surge for iPhone 18 Pro, but US buyers see smaller price hikes

TrendForce said Apple will continue to lean on Services revenue to offset higher hardware manufacturing costs, as substantial price increases risk slowing upgrade cycles. The report also cited a weak macroeconomic environment that has made consumers more cautious about spending. Apple announced broad price increases across most of its products in June, saying it had delayed the move as long as possible, but it left existing iPhone prices unchanged at the time. That is expected to change when the new iPhone models are unveiled next week.

For the 256GB Pro model, memory costs in the third quarter of 2026 are projected to be nearly 400% higher than a year earlier. While Apple has tried to negotiate lower prices for other components, those savings are unlikely to offset the pressure on overall bill-of-materials costs. TrendForce predicted that an increase in retail prices appears increasingly unavoidable as long as hardware costs remain elevated.

Separate data from Counterpoint Research shows that while smartphone prices are climbing worldwide, US consumers are facing relatively modest increases. Global smartphone retail prices have risen an average of 15% so far in 2026, with more than 40% of models seeing price hikes. New launches, meanwhile, are coming in 25% more expensive than their year-ago counterparts. But in the US, average prices have risen just 5%, compared with 7% in Europe and 10% in China. Price-sensitive markets have been hit far harder: India has seen a 21% increase, Asia Pacific 19%, the Middle East and Africa 18%, and Latin America 16%.

Major manufacturers have already raised US prices for their latest devices. Google’s Pixel 11 series added $100 across the lineup, Samsung did the same for the Galaxy S26 and S26+, and Motorola’s Razr Ultra 2026 jumped by $200. Counterpoint said component costs, particularly smartphone chips, are a key driver. To manage costs, manufacturers are also changing specifications, including reducing storage, trimming camera configurations, and offering more 4G phones in certain price segments.

Counterpoint noted that consumers worldwide are delaying upgrades, waiting for major sales, choosing lower-storage versions, and turning to refurbished devices. US buyers have an added buffer through postpaid plans and carrier financing, which spread the cost over monthly payments. Still, the low end of the US smartphone market is struggling, while premium devices continue to sell well. The Galaxy S26 Ultra recently became the best-selling Android phone globally, showing that some consumers remain willing to pay top dollar for high-end hardware.

The upcoming iPhone 18 series will add another data point when Apple unveils it next week. According to TrendForce, Apple’s first folding model, the iPhone Ultra, could start as high as $2,299, with the top-end configuration exceeding $3,000. Whatever Apple charges, US buyers appear to be entering the new generation from a relatively comfortable position compared with consumers in many other regions.