iPhone 18 Pro price hike could hurt more than expected

Remember when we thought a $300 hike pushing the iPhone 18 Pro to $1,399 was bad? Good old days! With the global component crunch showing no signs of easing, Apple is reportedly sinking deeper into trouble. This means that its new phones might cost even more than feared.

A substantial increase

Weibo leaker Instant Digitals reports that the iPhone 18 Pro will start at 9,999 Yuan (~$1,482) in China, up 1,000 Yuan from the 8,999 Yuan (~$1,334 ) iPhone 17 Pro.

For reference, the iPhone 17 Pro retails for $1,099 in the US. Prices are higher in China due to taxes, so this rumor doesn't translate to a $1,500 base price in the US.

If anything, a 1,000 Yuan increase (~$148) suggests a smaller hike than earlier reports claimed.

That's an optimistic estimate, though. It's best not to put too much stock in it, as another report paints a grimmer picture.

Soaring production costs

The iPhone 18 Pro is going to be more expensive to manufacture. | Image by TrendForce

The iPhone 18 Pro's Bill of Materials (BOM) cost will jump 40%, according to TrendForce. BOM calculates the total cost of the components and parts that go into a product.

If Apple were to pass that entire increase on to customers to maintain its gross margins, the retail price could hit $1,539. However, TrendForce expects the company to trim its margins rather than risk tanking consumer demand.

What's your price ceiling for the iPhone 18 Pro?

Not looking good

No matter which way you look at it, a price jump is coming. Apple has already signaled as much by jacking up prices on a range of products. The company might even bump up the iPhone 17 Pro's price before the new flagship arrives.

GF Securities analyst Jeff Pu recently estimated the increase at north of $250.

Given that memory prices are projected to rise throughout the iPhone 18 Pro cycle, Apple will likely build a price cushion to avoid absorbing losses down the road.

Should the US government step in?

While the iPhone 18 Pro cannot be salvaged at this point, US officials could help Apple prevent a sequel next year by allowing it to use chips from Chinese companies. Apple has already started testing CXMT chips, but it's unlikely to proceed without getting the government on board.

Here's how much the iPhone 18 Pro might cost:

Some reports pin the increase at $300
While others point to an even more brutal increase
But a smaller hike is also possible

$90

$210

$120 off (57%)

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Anam Hamid is a computer scientist turned tech journalist who has a keen interest in the tech world, with a particular focus on smartphones and tablets. She has previously written for Android Headlines and has also been a ghostwriter for several tech and car publications. Anam is not a tech hoarder and believes in using her gadgets for as long as possible. She is concerned about smartphone addiction and its impact on future generations, but she also appreciates the convenience that phones have brought into our lives. Anam is excited about technological advancements like folding screens and under-display sensors, and she often wonders about the future of technology. She values the overall experience of a device more than its individual specs and admires companies that deliver durable, high-quality products. In her free time, Anam enjoys reading, scrolling through Reddit and Instagram, and occasionally refreshing her programming skills through tutorials.

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