Apple Says Price Hikes Are "Inevitable" Amid Rising Costs... What Will the iPhone 18 Cost?

[Financial News] Apple, which is preparing to launch new products this fall, has signaled that it will raise prices. CEO Tim Cook said the company has little choice because of surging memory chip and storage prices.
Cook said this in an interview with The Wall Street Journal (WSJ) on the 17th local time in the United States. He said, "Unfortunately, price increases are inevitable," adding, "We have done our best to minimize the huge increases passed on to us and protect consumers, but the situation has become unmanageable."
Cook said, "Consumers want devices, but supply has fallen, and memory makers are passing on massive price increases. The key is for reasonable memory prices and supply to return to consumer products."
When asked whether Apple might ease restrictions on cooperation with Chinese memory makers, he replied, "I think everything has to be on the table. We need to review all supply options."
Cook drew a line at the idea of Apple making memory chips itself. He said the company would instead look for ways to expand supply by using its cash reserves. "We are willing to use our financial capacity to be part of the solution," he said. "But we cannot do everything. We know what we do well."
He did not mention which products would be raised, when the increases would take effect, or how much they would be. Apple is, however, expected to launch the new iPhone 18 Pro and a foldable iPhone in September. The company already raised the starting price of the Mac mini in its PC lineup last month. Prices for DRAM and NAND flash memory have roughly quadrupled since last year.

The price surge is being driven by artificial intelligence. Memory chip prices have climbed as major U.S. tech companies such as Google have increased investment since last year in building data centers and facilities for AI development and operation. Cook specifically pointed to the expansion of High Bandwidth Memory (HBM) production for AI servers as a factor causing shortages in DRAM supply for ordinary consumers. He said he has worked in the IT supply chain for about 40 years, but has never seen such a sharp rise in raw material prices over the past six months, calling it "a once-in-a-century flood."
U.S. market research firm TechInsights forecast that memory chip prices will keep rising through 2027. Based on the iPhone 17 Pro, it estimated that DRAM costs for 12GB would be $39 and NAND flash memory for 256GB would be $13, but for the iPhone 18 Pro, those figures would jump to $145 and $51, respectively.
As a result, the component and manufacturing cost of the iPhone 18 Pro would rise 25% to $726 from $582. To maintain the same 47% margin as the iPhone 17 Pro, Apple would need to raise the iPhone 18 Pro's selling price to $1,371.
The WSJ said that if Apple follows its usual pricing strategy, the iPhone 18 Pro would likely cost $1,299, or about 1.98 million won. That would be $200, or 18%, higher than the current starting price of the iPhone 17 Pro at $1,099.

pjw@fnnews.com Reporter Park Jong-won Reporter