Since last fall, several analysts have agreed on a crucial point regarding the next generation of iPhone. In 2026, Apple would face an explosion in production costs, fueled by a shortage of RAM due to growing demand in the artificial intelligence sector. Added to this is an increase in the manufacturing cost of the Apple Silicon A20 chip, which will equip these next iPhones. A report from United Daily News, published earlier this month, suggested that the chip would cost twice as much to manufacture as the previous A19.
These two factors, namely the surge in RAM prices and the estimated additional cost of the A20 chip, would already be enough to significantly increase the manufacturing cost of the iPhone 18. However, against all expectations, a new report from Ming-Chi Kuo reveals that Apple plans to pay even more to manufacture the iPhone 18and of his own free will. An unexpected, assertive strategy that contrasts with previous signals from the supply chain.
Apple ready to contain price increases
In a note published last weekend, Ming-Chi Kuo states that Apple would not intend to increase the base price of the iPhone 18. According to him, the Apple firm would aim to keep the entry-level price to a minimum, so as not to compromise the commercial attractiveness of the series. This positioning, shared on the
The analyst does not deny cost increases, quite the contrary. He confirms that the price of RAM is clearly increasing, as is that of Apple Silicon chips engraved in 3 or 2 nanometers.
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Apple has nevertheless decided not to pass on all of these increases to the final price. It would pay part of the difference itself, in particular to ensure a priority place at TSMC, its chip supplier. The latter being saturated by demand linked to artificial intelligence, Apple would agree to pay more to ensure its processors are manufactured on time.
An offensive strategy to preserve its shares
According to Ming-Chi Kuo, Apple could even take advantage of this tense situation to strengthen its position. While several competitors are limiting their orders in the face of rising costs, the Apple firm is, on the contrary, banking on an early and massive order for components. This choice would allow it to consolidate its relationships with key suppliers, while ensuring continuous availability of its products, even in the event of high demand at the start of the school year.
This approach could, however, temporarily reduce its margins on the iPhone 18. Ming-Chi Kuo believes that Apple will compensate for this gap with revenues generated via its services, such as iCloud, Apple One or AppleCare+.
By: Keleops AG
