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Global memory shortages have rattled the smartphone supply chain, and analysts warned that Apple could face higher costs for next year’s iPhone lineup. But Apple’s growing reliance on custom silicon — from main SoCs to modems and wireless chips — might blunt memory-driven price pressure, keeping the iPhone 18 Pro from becoming substantially more expensive.
Why memory shortages matter — and what’s at stake
Industry reports — including a United Daily News item — say Apple considered raising iPhone prices after the iPhone 17 already landed with higher tags. Rumors suggest another $50–$100 hike could be on the table for the iPhone 18 series. At the same time, Apple is planning a bigger product push toward 2026, including its first foldable iPhone, which adds complexity and cost to the supply chain.
Apple’s secret weapon: in-house chips
Rather than relying on outside vendors, Apple is moving key components in-house. That strategy can soften cost swings from volatile parts markets like memory.
Which chips are expected to help
- A20 and A20 Pro: Built on TSMC’s 2nm process, these SoCs are rumored to run in the iPhone 18 Pro, Pro Max, the foldable model and even the base iPhone 18. While newer nodes can be costlier than prior generations, designing and producing Apple’s own SoC reduces dependency on third-party suppliers and their margins.
- C2 5G modem: Apple’s second-generation modem — likely made on TSMC’s 4nm node — is expected across the iPhone 18 family. Early experience with the C1 modem in the iPhone 16e reportedly saved Apple roughly $10 per unit; multiplied across millions of phones, that becomes hundreds of millions in savings.
- N1/N2 wireless chips: Apple’s internal wireless solutions replace licensed components from vendors like Broadcom, cutting licensing fees and recurring costs.
How these savings offset memory price swings
Even if A20-series chips cost more to produce than A19, the overall reduction in third-party royalties and modem fees creates a buffer. Analysts estimate that combined savings across custom SoCs, modems and wireless chips could significantly counterbalance the higher bills for memory components — potentially preventing an additional price bump for the iPhone 18 Pro and Pro Max.
That said, supply constraints can still affect specific configurations (higher-capacity storage models) and regional pricing. Apple’s vertical integration gives it flexibility: it can shift component mixes, negotiate volume deals with foundries like TSMC, and absorb shocks that smaller OEMs cannot.
What buyers should watch for
Don’t expect guaranteed price stability yet. Memory shortages remain a wild card, and Apple could still pass some costs on for certain variants. But if Apple’s custom chip strategy pays off at scale, mainstream Pro buyers may avoid another round of sticker-shock — while Apple prepares to add a foldable device to the lineup in the coming years.
In short: imagine Apple using its silicon roadmap as an insurance policy. It won’t erase every supply-chain headache, but it could be the difference between a modest price adjustment and a full-blown price hike for next year’s Pro models.
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