Apple may raise the iPhone 18 Pro Max’s average selling price by $200, but that increase may still not be enough to fully protect its margins. Counterpoint Research says the model’s component costs are rising fast enough to keep profitability under pressure.
The sharpest cost increase is expected in memory. Higher NAND flash storage and DRAM prices are driving up the bill of materials, and the impact is likely to be strongest on higher-capacity versions that already rely on more memory from the start.
Memory Costs Are Doing the Most Damage
Counterpoint’s estimate, highlighted by Gizmochina, points to a much heavier burden on the 1TB version. That model could see costs rise by nearly $300 compared with the iPhone 17 Pro Max 1TB, largely because of the jump in memory expenses.
| Model Comparison | Estimated Cost Impact | Main Driver |
|---|---|---|
| iPhone 18 Pro Max 1TB | Up nearly $300 | Higher NAND flash storage and DRAM prices |
| iPhone 17 Pro Max 1TB | Lower | Used as the comparison baseline |
Apple’s next premium model is also expected to use the A20 Pro chip built on TSMC’s 2nm process. The new chip should improve performance and power efficiency, but it will also add manufacturing cost.
Some Parts Get Cheaper, But Not Enough
Not every component is headed in the same direction. Counterpoint says the display and some other parts may become cheaper than those in the iPhone 17 Pro Max, which would help offset part of the pressure from memory and silicon.
Even so, the lower prices in those areas may not be enough to cancel out the broader cost increase. Counterpoint’s view is that Apple could still end up with slightly weaker margins on the iPhone 18 Pro Max, especially if expensive components take up a larger share of the total build.
Pricing Could Vary By Storage Tier
Because the memory impact is not the same across every version, Apple may take a different pricing approach by storage capacity. That would be a more targeted way to protect profit than applying one flat increase across the entire lineup.
This strategy could help Apple manage the models most exposed to rising memory costs. But even with the projected $200 average price increase, Counterpoint still believes the iPhone 18 Pro Max margin could land slightly below that of the iPhone 17 Pro Max.
In other words, a higher sticker price will not automatically translate into better profitability. With memory, the A20 Pro chip, and only partial relief from cheaper components, the iPhone 18 Pro Max may still remain a margin challenge for Apple.