iPhone 18 Pro DRAM to make up 42 percent of total BOM in H1 2027

iPhone 18 Pro Profits Under Pressure as DRAM Costs Could Consume 42% of Its Bill of Materials in Early 2027

iPhone 18 Pro Price Could Climb as RAM Costs Put Pressure on Apple

Apple’s next Pro iPhone lineup may be facing a major cost challenge before it even reaches store shelves. New supply-chain estimates suggest that the iPhone 18 Pro could become significantly more expensive to produce, with memory costs taking up an unusually large share of the device’s total Bill of Materials.

The biggest concern appears to be DRAM. The iPhone 18 Pro is expected to feature 12GB of LPDDR5X RAM, and rising memory prices could make that component one of the most expensive parts inside the phone. For Apple, that creates a difficult balancing act: protect profit margins or pass some of the extra cost on to buyers.

According to industry estimates, DRAM could account for around 34 percent of the iPhone 18 Pro’s total component cost in the third quarter of 2026. That is already a major share, but the situation may become even more challenging in the first half of 2027, when memory could rise to more than 40 percent of the total BOM.

That would be a striking shift. Traditionally, high-end components such as the main processor and display are among the most expensive parts of a flagship smartphone. However, estimates suggest that the A20 Pro chip and OLED display may each represent only about 9 percent of the iPhone 18 Pro’s total cost during the same period. In other words, RAM could cost Apple far more than the processor or the screen.

The A20 Pro is expected to be one of Apple’s most important upgrades for the iPhone 18 Pro series, especially as the company continues to push performance, efficiency, and on-device AI capabilities. But even with a next-generation chip and premium OLED panel, memory pricing may dominate the production cost story.

Storage could add even more pressure. While the exact NAND cost breakdown for the 256GB iPhone 18 Pro is not detailed, estimates for higher-capacity models suggest that 1TB of storage alone could add around $250 to the total component cost. When combined with DRAM, memory and storage costs could reach roughly $400, a massive figure for a single section of a smartphone’s hardware.

That raises an important question for consumers: will the iPhone 18 Pro price increase?

A retail price hike of around $200 has been suggested as a possibility if Apple decides to pass a meaningful portion of the increased component costs on to customers. However, that decision is not simple. If Apple absorbs too much of the higher DRAM and NAND pricing, its profit margins could shrink. If it raises prices too aggressively, demand for the iPhone 18 Pro could weaken, especially in markets where premium smartphones are already becoming harder to justify.

The 256GB iPhone 18 Pro may be especially important because it is likely to serve as the entry point for many buyers choosing the Pro model. If Apple increases the starting price, it could affect upgrade decisions for users coming from older iPhones. On the other hand, Apple may choose a more balanced approach by absorbing part of the added cost while raising prices modestly.

For now, the final retail price remains uncertain. What is clear is that the iPhone 18 Pro’s hardware cost structure could look very different from previous generations. With LPDDR5X RAM prices climbing, storage costs remaining high, and Apple preparing the A20 Pro platform, the company may need to make one of its toughest pricing decisions yet.

The answer will likely come when Apple officially presents the iPhone 18 Pro and iPhone 18 Pro Max. Until then, the biggest story surrounding the next Pro iPhone may not be the camera, the chip, or the display, but the rising cost of memory hidden inside the device.