Apple to Absorb Rising Memory Costs for iPhone 18, Maintain Pricing to Gain Market Share: Ming-Chi Kuo

Apple Inc. (AAPL-US) will absorb increased memory costs rather than raise prices for its iPhone 18 series in 2026, according to analyst Ming-Chi Kuo. The company aims to maintain market competitiveness and expand its share by keeping starting prices stable despite a 230% surge in memory costs since early 2025. Apple has secured critical DRAM supply agreements through Q2 2026, with prices renegotiated quarterly rather than semi-annually. The company's services division provides financial flexibility to offset margin pressure from memory pricing, currently estimated at $70 per 12GB LPDDR5X module. This strategy may extend to Mac products, potentially eroding competitor market share in notebooks.