iPhone 18 Pro Max faces pressure for record price increases: A major challenge for iPhone Ultra ambitions.
An additional $300 in production costs due to soaring memory chip prices is pushing the iPhone 18 Pro Max into its biggest price surge in history, inadvertently putting pressure on the foldable iPhone Ultra, which is expected to cost up to $2,500.
The tech market is facing significant upheaval as financial reports and supply chain data indicate that Apple's next generation of iPhones will have unprecedentedly high prices. Pressure from component costs is not only affecting the traditional Pro Max line but also threatens the market accessibility of the first foldable iPhone Ultra model.
Component cost shock: When memory chips become a burden
The latest data from Counterpoint Research shows that the total cost of components (BOM) to complete an iPhone 18 Pro Max is expected to increase by approximately $300 compared to the current version. This is a record increase in manufacturing costs in Apple's smartphone development history.
The core reason for this increase lies in the global memory chip shortage crisis. For the iPhone 18 Pro Max version equipped with 12GB of RAM and 1TB of internal storage, the cost of both NAND and DRAM chips is estimated to skyrocket by four times compared to its predecessor. While screen costs may decrease slightly due to supply chain optimization and camera module costs only increase negligibly, the escalating semiconductor prices have wiped out these cost-saving efforts.
Apple's adjustment strategy and the $1,900 price point.
To protect profit margins against cost pressures, Apple is expected to adopt flexible pricing strategies. The company may choose to directly increase prices or change the basic storage options, similar to what it did with the iPhone 15 Pro Max when it removed the 128GB version.
Experts predict that consumers will have to pay an average of about $200 more to own an iPhone 18 Pro or Pro Max. Under this scenario, the highest-end version of the iPhone 18 Pro Max could reach $1,900. However, this increase is still not enough to fully offset the increase in BOM costs, meaning Apple may have to accept lower profit margins per unit to maintain competitiveness.
iPhone Ultra: A difficult challenge for foldable phone models.
The price increase of the Pro Max line inadvertently created a huge psychological and financial barrier for the iPhone Ultra – Apple's first foldable phone, which was expected to launch at the same time. With a traditional bar-style smartphone already approaching $2,000, pricing a groundbreaking device becomes extremely sensitive.
According to analyst Ming-Chi Kuo, the iPhone Ultra will be the most expensive device in Apple's history, boasting superior specifications:
- Screen:Next-generation foldable OLED technology with an almost invisible crease.
- Hinge mechanism:Uses liquid metal materials with extremely high strength.
- Expected price:The price ranges from $2,300 to $2,500 (approximately 58-63 million VND).
Market expectations and potential for shortages.
Despite the exorbitant price tag, Apple is being cautious in the initial phase. The company plans to ship only 500,000 to 1 million iPhone Ultra units in the first batch, before scaling up to around 7-8 million units the following year. This limited supply combined with the new technology could create a buying frenzy, similar to the phenomenon the iPhone X achieved in 2017.
Simultaneously raising the price of the Pro Max line and introducing the ultra-premium Ultra line demonstrates a strategic shift by Apple. The company is gradually repositioning its product segment, transforming the iPhone from just a technological device into a symbol of luxury and cutting-edge technological innovation.
