Tim Cook confirmed that Apple will not be able to completely avoid price increases due to higher semiconductor prices, leaving the details until September’s presentation. TechInsights analysts attribute this to the unprecedented rise in DRAM and NAND chip prices, which could quadruple by the fall. Manufacturers such as Samsung and Micron are massively redirecting capacity to server components for AI data centers, creating shortages in the consumer market.

Math TechInsights shows that the memory cost for iPhone 18 Pro will rise from $52 to $196, which will increase the total cost of smartphone components from $582 to $726 (a 25% increase). To maintain its high margin of 47%, Apple will have to raise the retail price significantly, which could be as high as $1,299 when rounded.

Making matters worse, the price of a new camera block will rise by another 50%, according to analyst Min-Chi Kuo. With this in mind, the starting price of the iPhone 18 Pro could well break through the psychological mark and reach $1,399, making it the most expensive basic flagship in the history of the line.