iPhone 18 Series Could Cost Much More Than Expected; Tim Cook Says Price Hikes Are Unavoidable

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-Carlsen Martin

Published: Thursday, June 18, 2026, 9:34 [IST]

Apple could be preparing consumers for a significant price increase with the iPhone 18 series, as rising memory and storage costs continue to put pressure on the company’s profit margins.

While earlier reports suggested that Apple would absorb the higher component costs associated with the next-generation iPhone, recent comments from CEO Tim Cook indicate that maintaining current pricing may no longer be feasible.

What Tim Cook had to Say

Speaking in an interview with The Wall Street Journal, Cook acknowledged that Apple has been working hard to shield customers from increasing component costs. However, he admitted that the situation has become increasingly difficult due to a global shortage of memory chips, largely driven by the rapid expansion of AI infrastructure and data centres.

“Unfortunately, price increases are unavoidable,” Cook reportedly said, adding that Apple has done its best to mitigate the impact of rising costs but may not be able to continue doing so indefinitely.

AI Boom Driving Up Memory Prices

One of the biggest challenges facing Apple is the sharp increase in the cost of DRAM and storage components. Memory manufacturers have reportedly shifted their focus toward producing high-bandwidth memory (HBM) for AI servers, reducing supply for consumer electronics. As a result, prices for conventional memory and storage chips have surged over the past few months.

The timing of Cook’s comments is particularly noteworthy. Recent reports suggested that the iPhone 18 lineup could feature 12GB of RAM, a substantial upgrade from the 8GB available on current-generation iPhones. The additional memory is expected to support more advanced Siri capabilities and a broader range of AI-powered features arriving with iOS 27.

Although DigiTimes Asia previously claimed that Apple intended to keep iPhone 18 pricing unchanged despite the hardware upgrade, Cook’s remarks suggest that strategy could be under review.

iPhone 18 Pro Price Hike Could Be on the Horizon

According to estimates cited by The Wall Street Journal from market research firm TechInsights, DRAM costs for the base iPhone 18 Pro could jump from around $39 to $145. Storage costs are also expected to rise significantly, increasing from approximately $13 to $51. Combined with higher manufacturing expenses, the overall production cost of the device could increase by nearly 25 percent compared to the iPhone 17 Pro.

If those projections prove accurate, Apple could raise the starting price of the iPhone 18 Pro to $1,299, up from the current $1,099, marking one of the most notable iPhone price increases in recent years.

While Apple has yet to confirm any pricing changes for the iPhone 18 series, rising component costs and growing AI ambitions suggest that consumers may have to pay more for the company’s next-generation flagship devices.