Apple to pass through 100%+ memory cost surge, raising iPhone ASPs $100-$200
AAPL•Apple CEO Tim Cook said price increases across iPhone, Mac and iPad lines are unavoidable, signaling the company will pass through a more than 100% surge in memory costs. Mizuho expects memory BOM expenses to climb from mid-teens to 25-30% of device cost and iPhone 18 ASPs to rise $100-$200.
1. Apple confirms price pass-through
In a recent executive statement, Apple CEO Tim Cook acknowledged that historic memory cost inflation can no longer be absorbed, marking a departure from prior margin protection. This confirms that price adjustments will be applied across the iPhone, Mac and iPad product lines.
2. Memory market tightness fuels cost surge
Industry data shows memory contract prices have surged over 100% in H1 2026 due to structural NAND and DRAM shortages. Hyperscale AI customers have crowded out consumer electronics buyers, intensifying pricing leverage for memory suppliers.
3. Margin outlook and ASP adjustments
Mizuho analysis projects memory BOM costs will rise from mid-teens to 25-30% of device manufacturing expenses, prompting an anticipated $100-$200 average selling price increase for iPhone 18 models. This shift could bolster gross margins compared with continued cost absorption.
4. Supplier stocks gain catalyst
Memory chip suppliers SanDisk and Micron have rallied sharply, with both stocks trading near 52-week highs following Apple’s pricing confirmation. The strategic reversal underlines heightened demand and pricing strength in the semiconductor supercycle.
