Will the iPhone 18 prices be affected by rising memory costs?

No, Apple is expected to absorb the rising memory costs for the iPhone 18 models, keeping prices stable.

How will Apple offset the increased memory costs for the iPhone 18?

Apple plans to offset the costs by increasing revenue through its services, potentially raising subscription prices for services like Apple Music and iCloud+.

When are the iPhone 18 models expected to launch?

The iPhone 18 lineup is anticipated to be unveiled and launched in the fall of 2026.

Home / Technology / Apple to Absorb Memory Costs for iPhone 18 Launch

Apple to Absorb Memory Costs for iPhone 18 Launch

29 Jan

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Summary

Apple will maintain iPhone 18 prices despite rising memory costs.
Company plans to offset increased expenses through services revenue.
iPhone 18 models are expected to launch in the fall of 2026.

Apple to Absorb Memory Costs for iPhone 18 Launch

Apple is expected to maintain the pricing of its upcoming iPhone 18 models, despite significant increases in memory component costs. Analyst Ming-Chi Kuo indicated that Apple intends to absorb these rising expenses. This move is designed to retain market share, even if it impacts the company's gross margins in the short term.

The global demand for memory chips, largely driven by AI data centers, has led to supply reductions for smartphones and PCs, consequently driving up prices. While other manufacturers might pass these costs to consumers, Apple aims to avoid this by negotiating favorable terms with suppliers on a quarterly basis.

To compensate for the absorbed costs, Apple is anticipated to increase revenue through its robust services portfolio. Subscriptions such as Apple Music, Apple TV+, and iCloud+ may see price adjustments. This strategy allows Apple to offer competitive pricing on its new hardware while bolstering its recurring revenue streams.