iPhone 18 Pro Max could be Apple's most expensive iPhone yet: Here's why

The iPhone 18 Pro Max could cost around $300 more than the iPhone 17 Pro Max. This is still a rumour, and Apple has not confirmed any pricing. One reason behind the expected price hike is that Apple has already increased prices of some iPads, MacBooks and Macs, making people expect a similar move for the iPhone.

The biggest reason for the higher price is said to be the rising cost of making the phone. Counterpoint Research estimates that the Bill of Materials (BOM) for the 1TB iPhone 18 Pro Max could be close to $900. This means the cost of all the parts used to build the phone. For comparison, the estimated BOM of the 1TB iPhone 17 Pro Max was around $550. That means the production cost could rise by roughly $350.

The biggest jump in cost comes from memory chips. These include NAND flash storage and DRAM memory, which are essential parts inside the phone. NAND flash storage is where your apps, photos, videos and files are stored, even when the phone is switched off. Counterpoint says the NAND storage alone could now cost more than $250. That is much higher than before. The report says memory chip prices are increasing because of the growing demand for AI infrastructure and AI hardware around the world.

Another reason for the higher production cost could be Apple’s new A20 Pro chip. The A20 Pro chip is expected to be Apple’s first processor built using a 2-nanometre manufacturing process. This new chip technology is more expensive to produce than the current process used for the A19 Pro chip. Even if production costs rise, Apple may not increase prices equally across every model. Reports suggest Apple could use tiered pricing. This means lower-storage models like 256GB or 512GB may get a smaller price increase than the 1TB version. Higher-storage models cost more to make because they use more expensive memory components.

This means Samsung gets about six weeks of premium sales before Apple arrives, while Google gets only around four weeks. Once Apple launches its new iPhones in September, the company usually dominates smartphone sales during the holiday season. Mobile carriers also start aggressive upgrade and contract renewal offers during September and October, helping iPhone sales.

Also read: Apple set to overtake Google as world’s second-most valuable company: What’s driving the surge?

Android updates often arrive at different times because many companies make Android phones. This creates software fragmentation, where users get updates on different dates depending on their phone brand and region. Apple avoids this issue because it controls both the iPhone hardware and iOS software, according to Forbes.

The biggest new features are expected to be Apple Intelligence and Siri AI improvements. Gurman says these are “Snow Leopard-like” updates, meaning they focus on making the software smoother and more reliable instead of changing how the iPhone looks, as quoted by Forbes.

Apple employees are believed to already be testing iOS 27 on internal iPhone 18 Pro devices before launch. Apple will use feedback from millions of beta users to fix bugs before the official iOS 27 release.

Experts say this could reduce “sticker shock” because consumers would already be used to higher flagship smartphone prices, according to Forbes. Apple can also change its marketing based on what customers like about Samsung and Google phones. If cloud-based AI becomes popular, Apple can highlight its AI features. If users worry about privacy, Apple can promote its on-device, privacy-focused AI. Launching last also gives Apple extra time to understand customer demand and fine-tune its sales strategy.