Kuaikeji, August 10th news—Apple is set to host its autumn new product launch event in early September, where it will officially unveil three new smartphone models, including the iPhone 18 Pro series and the iPhone Ultra.

According to the latest report from TrendForce, taking the 256GB version of the iPhone 18 Pro as a benchmark, the overall Bill of Materials (BOM) cost has surged by approximately 38% compared to the Pro model from the same period in 2025. The primary driver behind this cost escalation is the continuous climb in memory prices.

The proportion of memory components in the total cost of the iPhone Pro has undergone a significant transformation. A year ago, memory accounted for only 10% of the total cost, but by the third quarter of 2026, this figure had soared to 34%. Industry analysts predict that by the first half of 2027, memory costs will exceed 40%, surpassing the processor and screen to become the largest cost component of the entire device.

The price of memory chips is expected to continue its upward trajectory in 2027, further amplifying the overall cost increase of the iPhone 18 Pro series and intensifying the pressure for price hikes at the retail level.

Drawing on the pricing adjustment strategy employed for previous MacBook products, research reports suggest that Apple will opt to compress its own gross profit margins to limit the extent of price increases for the iPhone 18 Pro series, thereby ensuring stable shipment volumes and market share for the new models.

In addition to margin compression, Apple has another strategy to mitigate the impact: raising the prices of older iPhone models that remain on sale after the official release of the iPhone 18 series, thereby sharing the overall cost burden caused by soaring memory prices.

Compared to Apple, Android smartphone brands are under even greater operational strain. Most models have limited scope for margin compression. If basic hardware configurations are to be maintained without downgrading, the extent of price increases at the retail level will be significantly higher than that of the iPhone series.

The profit margins for mid-to-low-end Android models are extremely thin. Since the beginning of 2025, memory prices have increased multiple times, resulting in negative gross margins for several low-end product lines. Brands are left with little choice but to significantly raise prices or discontinue the relevant models altogether.

Given the current upward cycle of memory prices, TrendForce predicts that from the second half of 2026 to 2027, the overall output scale of global smartphones will continue to face downward pressure, with expectations for revisions in shipment volumes.