Even with a big price hike, the iPhone 18 Pro Max could be less profitable than the 17 Pro Max
Apple may not have a choice but to make the iPhone 18 Pro Max significantly costlier than its predecessor and still settle for a lower profit margin on every unit sold.
The iPhone 17 Pro Max is likely to be considered affordable soon enough. | Image by PhoneArena
It's no longer a big secret that this year's iPhone 18 Pro and 18 Pro Max are probably going to start at considerably higher prices than their predecessors, but if you still think Apple's greed will cause the hike predicted by some sources to circle $200 and $300 by others, a handy new infographic put together by Counterpoint Research might radically change your mind.
The iPhone 17 Pro Max was a bargain next to its impending sequel
Without factoring in manufacturing, marketing, software development, logistics, and retail expenses, Apple's most sophisticated 2025 handset was estimated to carry a bill of materials (BOM) of around $410 for a 256GB storage variant. Incredibly enough, that was down from a $485 component cost for a similar configuration of 2024's iPhone 16 Pro Max, as well as the $453 BOM of a 256GB iPhone 15 Pro Max back in 2023.
That's quite a substantial increase predicted for Apple's iPhone 18 Pro Max production costs. | Image by Counterpoint Research
Of course, none of those numbers are 100 percent reliable, but what's just about guaranteed is that the iPhone 18 Pro Max will be significantly more expensive to manufacture for Apple than the 17 Pro Max... and 16 Pro Max... and 15 Pro Max.
While Counterpoint Research doesn't have an exact estimate for Cupertino's next big thing yet, the above infographic puts the 18 Pro Max bill of materials at well over $800 for a top-of-the-line model with 1TB internal storage space.
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How should the iPhone 18 Pro Max be priced for you to consider it?
An equivalent iPhone 17 Pro Max variant apparently commanded a total production cost (excluding marketing) of around $500, which explains why Apple has no choice but to increase its recommended prices this fall and possibly settle for a smaller profit margin even with a $200 or $300 hike.
Not all components are getting more expensive
That would be the good news for Apple, although obviously, the minor cost reduction of the iPhone 18 Pro Max's display and "other parts" can't offset what looks like a bigger NAND and DRAM memory price jump than we ever imagined.
Compared to the 17 Pro Max, Apple's iPhone 18 Pro Max camera costs are only expected to increase slightly. | Image by PhoneArena
Again, we don't have the exact numbers here yet, but the iPhone 17 Pro Max's memory and storage together carried an estimated cost of $41 (for a 256GB configuration), while the 12GB RAM alone is now expected to set Apple back considerably more than that.
On top of everything else, camera costs are also likely to increase "slightly" due to "new" technologies, which will obviously make it that much harder for Apple to keep the iPhone 18 Pro Max's retail prices in check.
So how much is the iPhone 18 Pro Max likely to cost after all?
That remains difficult to know for sure with several months ahead of an official announcement and commercial debut, but gun to my head, I'd probably predict a starting price of $1,399.
That would "only" be $200 higher than what the most affordable 17 Pro Max model costs, which almost certainly means Apple will make less money when all expenses are accounted for on a 256GB storage variant.
These leaked dummies show how the iPhone 18 Pro Max could look next to the 17 Pro Max. | Image by Vadim Yuryev
The 512GB and 1TB configurations, meanwhile, could get bigger hikes to $1,649 and $1,899, respectively (at least in my view), but because I don't expect Apple's marketing budget to be reduced this year, that's also likely to result in slightly lower profits for the Cupertino-based tech giant.
Then again, we are talking about a company that generated no less than $112 billion in net income in 2025 alone, so Apple can clearly survive making $50 or $100 less in profit on an iPhone 18 Pro Max unit than the 17 Pro Max. Now it remains to be seen how the company's sales volume will be impacted by this year's virtually guaranteed price hikes.
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Adrian, a mobile technology enthusiast since the Nokia 3310 era, has been a dynamic presence in the tech journalism field, contributing to Android Authority, Digital Trends, and Pocketnow before joining PhoneArena in 2018. His expertise spans across various platforms, with a particular fondness for the diversity of the Android ecosystem. Despite the challenges of balancing full-time parenthood with his work, Adrian's passion for tech trends, running, and movies keeps him energized. His commitment to mid-range smartphones has led to an eclectic collection of devices, saved from personal bankruptcy by his preference for 'adequate' over 'overpriced'.
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