According to Apple analyst Ming-Chi Kuo on X, Apple is reportedly planning to keep the starting price of the upcoming iPhone 18 steady, even as the cost of the memory inside the device skyrockets. For years, Apple negotiated memory pricing on a semi-annual basis. However, the market has become so unpredictable that these negotiations are now happening quarterly. This shift reflects the rapid change in LPDDR (low-power mobile memory) and NAND flash storage prices.
Kuo reports that 1Q26 has already seen significant price hikes, and investors should expect a similar quarter-over-quarter increase in 2Q26. While NAND flash increases are slightly lower than initial fears, the overall trend is clear: the chips that make your iPhone run are getting much more expensive to build.
The AI industry is currently cannibalizing the supply chain, as manufacturers prioritize high-margin server chips over mobile components. By locking in guaranteed supply deals through its sheer volume and financial might, Apple is ensuring its production lines stay moving while rivals struggle to find parts. While higher component costs will inevitably hit iPhone gross margins in the short term, Apple’s long-term goal remains focused on the bigger picture.
Investors will be watching closely during Apple’s earnings call this week. Kuo suggests that Apple’s commentary could actually impact the stocks of other industries and suppliers more than Apple itself.
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