The technology market is facing major turmoil as financial reports and supply chain data show that Apple’s next-generation iPhone will be priced at an unprecedented level. Rising component costs threaten not only the traditional Pro Max series, but also the market launch of the first foldable iPhone Ultra model.
The cost of the top-end iPhone 18 Pro Max can reach $1,900. Photo: AppleInsider
Parts Cost Shock: When Memory Chips Become a Burden
According to the latest data from Counterpoint Research, the cost of materials (BOM) required to produce the iPhone 18 Pro Max will increase by about $300 compared to the current model. This is a record increase in production costs in the entire history of Apple smartphone development.
The fundamental reason for this price increase is the global crisis of memory chip shortages. The iPhone 18 Pro Max with 12GB of RAM and 1TB of storage is estimated to quadruple the cost of NAND and DRAM chips compared to the previous model. Although supply chain optimizations have reduced screen costs slightly and camera module costs have increased only slightly, rising semiconductor prices have offset these cost-cutting efforts.
Apple’s adjustment strategy and $1,900 price tag.
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Apple is expected to adopt a flexible pricing strategy to protect profits from rising prices. The company may directly increase the price or change the base storage options, similar to how it discontinued the 128GB version of the iPhone 15 Pro Max.
Experts predict that you’ll pay, on average, about $200 more for the iPhone 18 Pro or Pro Max. In this case, the price of the top-end iPhone 18 Pro Max could reach $1,900. However, price increases will not be enough to fully offset rising component costs, and Apple may be forced to lower its profit margins per unit to remain competitive.
iPhone Ultra: This will be a very difficult task for a foldable smartphone.
The increase in prices for the Pro Max series inadvertently created a serious psychological and economic barrier for Apple’s first foldable smartphone, the iPhone Ultra, which was supposed to be released around the same time. Considering that even traditional bar-shaped smartphones already cost around $2,000, pricing a revolutionary device is extremely sensitive.
According to analyst Ming-Chi Kuo, the iPhone Ultra will be the most expensive Apple device ever and will have impressive characteristics.
- display:Adopts new generation OLED folding technology with almost invisible folds.
- Hinge mechanism:Uses liquid metal material with extremely high strength.
- Expected price: $2,300 to $2,500 (approximately 58 to 63 million Vietnamese dong).
market expectations and potential supply shortages;
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Despite the exorbitant prices, Apple is taking a cautious stance in the early stages. The company plans to limit its initial shipments to 500,000-1 million units and increase them to around 7-8 million units next year. This limited supply, combined with new technologies, can lead to explosive sales like the iPhone X in 2017.
Raising prices for the Pro Max series at the same time as introducing the ultra-luxury Ultra series signals a strategic shift for Apple. The company is gradually reorganizing its product segments to transform the iPhone from a simple technology device into a symbol of luxury and cutting-edge innovation.
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