Apple Raises iPhone Prices Up to $300 as Memory Costs Swell to 34% of Pro BOM
Updated
Updated · Yahoo Finance · Aug 11
Apple Raises iPhone Prices Up to $300 as Memory Costs Swell to 34% of Pro BOM
3 articles · Updated · Yahoo Finance · Aug 11
Summary
$300 price hikes on some iPhone models reflect a sharp jump in memory costs, which Apple says is already pressuring margins and could force further increases.
TrendForce estimates memory now makes up 34% of the iPhone Pro bill of materials, up from 10% a year ago, and says that share could top 40% in the first half of 2027.
Contract memory prices have risen fivefold to sevenfold since early 2025, pushing the iPhone 18 Pro 256GB bill of materials up an estimated 38% year over year.
Apple's exposure is broad because iPhone generated $54.25 billion of June-quarter revenue, while Jefferies cut the stock to Underperform, warning higher component costs could hurt demand and margins.
Micron and SK Hynix are the main beneficiaries: Micron reported $41.456 billion in fiscal Q3 revenue, up 345.7%, and said it is meeting only 50% to two-thirds of key customer demand.