Apple 5G Modem

Apple appears to be preparing a careful balancing act for the iPhone 18 Pro. While memory costs are expected to rise sharply, the company is also believed to be cutting expenses in other parts of the device to keep the final price under control. The pressure is coming from DRAM and flash memory, two components that sit at the center of smartphone production costs. J.P. Morgan estimates that combined memory costs for iPhone production could jump from $65 to $228 between 2025 and 2027. Apple is looking for offsets elsewhere That increase would be difficult for any manufacturer to absorb without adjustments, but Apple is not expected to pass the full burden directly to buyers. According to J.P. Morgan, the company still has room to reduce costs in other component categories and soften the impact on overall production expenses. One of the biggest savings opportunities is expected to come from Apple’s own 5G modem. The company is reportedly preparing to expand its in-house modem strategy, replacing Qualcomm parts in more models to lower manufacturing costs. In-house modem use is already spreading Apple has already started using its own modem in the iPhone 17e and iPhone Air, while the iPhone 17 Pro and iPhone 17 Pro Max still rely on Qualcomm. That split matters because modem choice can directly influence the bill of materials for each device. If the company extends its internal modem to future Pro models, it could reduce dependence on outside suppliers and improve its margin structure at the same time. J.P. Morgan believes that wider adoption would be one of the key reasons Apple can keep pricing pressure in check. What the pricing outlook suggests TechInsights previously estimated that the cheapest iPhone 18 Pro could reach $1,399, a notable jump from the iPhone 17 Pro’s $1,099 starting price at Apple Store. On Amazon, the iPhone 17 Pro is currently listed at $934. J.P. Morgan’s view is more restrained. The firm suggests Apple may only need to raise the base model by about $50 to $100 to preserve current profit margins, rather than pushing prices far higher. Margins remain the main priority The bank’s estimates show total production cost rising by only $26 this year and another $56 next year. That is far smaller than the projected memory spike, which is why savings from other components could become the deciding factor. For Apple, that approach offers a practical way to protect profitability without forcing a dramatic price increase for the Pro line. The final outcome will likely depend on how much of the memory burden can be offset by lower costs elsewhere in the device. Source: www.notebookcheck.net

Apple May Keep iPhone 18 Pro Prices in Check as Memory Costs Rise Sharply