iPhone 18 may see sharp price increase

Concept design of the iPhone 18. Photo from Instagram

The higher pricing is expected to stem largely from Apple’s next-generation A20 processor, which is based on a 2-nanometer manufacturing process and could cost up to US$280 per unit, about 80% more than the previous generation, Forbes reported, citing a supply-chain report from Taiwanese outlet UDN.

The report said the 2-nanometer process would significantly improve energy efficiency, performance, and AI processing capabilities, while also driving up costs, adding that the industry expects 2-nanometer mobile processors to become the most expensive smartphone chips to date. Rising memory prices could further push up smartphone costs alongside the more expensive processors, it added.

Tech site Phone Arena reported, citing South Korea-based tipster yeux1122, that higher memory prices are likely to affect select the 18 models as memory manufacturers increasingly shift capacity from consumer electronics to AI server demand.

Based on forecasts from analysts at Citigroup, Bank of America, and JPMorgan, the tipster said the price increases would apply mainly to Pro models, with larger jumps at higher storage tiers.

Driven by the AI boom, global memory prices have entered a record growth cycle, with DRAM price increases reportedly outpacing gold and pushing the value of bulk purchases to levels comparable with prime real estate prices in Shanghai.