Counterpoint Research estimates that the component costs for the iPhone 18 Pro Max could increase significantly, primarily due to rising NAND and DRAM prices. This rise is likely to impact Apple's profit margins and retail pricing strategy for different storage variants.
Counterpoint Research has analyzed the bill of materials for the upcoming iPhone 18 Pro Max.
They found that due to ongoing component shortages, NAND and DRAM costs are expected to see significant increases that could approach $300 per unit.
According to the report, the costs for NAND and DRAM are expected to rival the total current bill of materials for the iPhone 17 Pro Max, which includes processor, camera, and display components. The anticipated introduction of a 2nm system-on-chip (SoC) and new packaging techniques are also significant cost drivers.
While NAND and DRAM prices are increasing, Counterpoint notes that prices for displays and other components may decline. However, camera costs are projected to rise slightly due to new technology like the variable-aperture main camera.
Apple is expected to implement varying retail price increases based on storage capacity to maintain gross profits on higher-capacity models.
Despite an anticipated average retail price increase of $200 for iPhones this year, the company might face tighter profit margins.
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Counterpoint Research estimates that the component costs for the iPhone 18 Pro Max could increase significantly, primarily due to rising NAND and DRAM prices. This rise is likely to impact Apple's profit margins and retail pricing strategy for different storage variants.