What is Apple doing to limit the price increase of the iPhone 18 Pro?
Rising memory chip prices are putting pressure on iPhone 18 Pro production costs. Apple is reportedly in successful negotiations with display suppliers, thereby finding ways to curb the price increase of the new generation of iPhones.
Apple is exploring ways to control iPhone 18 Pro production costs amid soaring memory prices. One notable result is achieving significantly lower prices for OLED displays, a component that accounts for a substantial portion of the cost of producing high-end smartphones.
Apple is expected to pay only around $68 per OLED panel for the iPhone 18 Pro Max, significantly less than the approximately $110-$120 it reportedly paid for the iPhone 17 Pro Max screens.
If the figures are accurate, Apple has reduced the cost of a critical component by almost half.
Apple puts pressure on Samsung and LG.
The two main OLED display suppliers for the iPhone 18 Pro series are reportedly Samsung Display and LG Display. Apple is said to have been actively negotiating with the two South Korean companies to lower panel prices, while the technical requirements for the next-generation displays remain high.
Previously, Apple had suggested a price of around $70 for the OLED panel of the iPhone 18 Pro Max. Industry sources estimate the actual supply price could be around $66.50, about 20% lower than the previous generation. This suggests that Apple has actually sought to reduce screen costs, rather than just having a plan on paper.
Apple is also reportedly being more proactive about its supply chain. The company may increase its display inventory to about six weeks' worth, instead of the usual four weeks. Purchasing in large quantities and preparing its supply early could give Apple an advantage in price negotiations.
Why does Apple need to save every dollar?
The root cause lies in memory prices. Demand for memory chips is surging as technology companies continuously build data centers to support AI. This puts pressure on the supply of DRAM memory and drives up memory prices, consequently increasing the production costs of many electronic devices.
iPhones are not immune to this influence either.
According to PhoneArena, current predictions suggest various price increases for the iPhone 18 Pro, ranging from around $50 to $400, with an increase of $200-$300 considered one of the most noteworthy scenarios.
In this context, saving a few dozen dollars per iPhone makes a huge difference. Apple produces iPhones in massive quantities, so even a small reduction on each device can result in significant savings.
However, a cheaper screen doesn't necessarily mean the iPhone 18 Pro will be cheaper.
These savings will most likely only help Apple offset a portion of the increased costs from memory and other components.
The monitors are cheaper but the quality is still guaranteed.
It's noteworthy that Apple doesn't seem to reduce costs by using lower-quality displays.
Many sources suggest that the iPhone 18 Pro will use LTPO+ display technology, an improved version of the LTPO currently used in the iPhone Pro models.
LTPO allows the display to dynamically change its refresh rate depending on the content. When the user scrolls or plays games, the display can operate at a high frequency; when displaying static content, the refresh rate decreases to save energy.
With LTPO+, Apple is reportedly aiming for more efficient control, allowing the display to operate at a high frequency while still saving power.
Therefore, if the leaks are accurate, Apple is trying to solve a rather difficult problem: reduce component costs while still upgrading technology.
The iPhone 18 Pro battery is also expected to have increased capacity.
A more power-efficient display could be beneficial if Apple simultaneously increased battery capacity.
Some sources suggest that the iPhone 18 Pro and 18 Pro Max will have larger batteries. Specifically, the iPhone 18 Pro Max may see a 9% increase for the eSIM version and up to 12% for the international version, although this information has not yet been confirmed by Apple.
If a larger battery is combined with a more efficient screen, actual battery life can be improved without significantly changing the device's size.
The price of the iPhone 18 Pro could still increase.
Although Apple has found ways to significantly reduce display costs, it hasn't been enough to reverse the upward trend in manufacturing costs.
Memory remains a major issue, while other components and chip manufacturing costs could also increase. Therefore, the likelihood of the iPhone 18 Pro being sold at a higher price than its predecessor remains very high.
What Apple can achieve is not to keep prices the same, but to limit the increase.
If the earlier forecasts of a $200-$300 increase were too pessimistic, lower costs for screens and other components could help Apple bring the actual increase down to a lower level.
In other words, users may still have to pay more for the iPhone 18 Pro, but the increase may not be as significant as the most worrying predictions.
The cost battle behind an iPhone
Behind each new generation of iPhone is more than just camera, chip, or design upgrades. With a product manufactured on a scale of tens of millions of units, the cost of each component can directly affect the final selling price.
Apple's ability to negotiate lower OLED prices while still pursuing new display technology shows the company is seeking to offset the pressure from increasingly expensive components.
However, Apple has not yet announced the official price of the iPhone 18 Pro. Therefore, current figures regarding price increases should only be considered as predictions.
Apple is expected to announce the iPhone 18 Pro in September 2026, at which point users will know whether the company's cost-cutting efforts have actually resulted in a more "affordable" price.
