iPhone 18 prices in Israel may rise by 1,500 shekels: Apple's unusual move

Apple's bill of materials is expected to jump by approximately 38% compared to the previous generation. The main driver behind this price hike is the sharp rise in memory and storage costs. The company now faces a choice between absorbing the costs or passing them on to consumers.

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iPhone 18 prices in Israel may rise by 1,500 shekels: Apple's unusual move
Photo: ICE / אייפון (צילום shutterstock)

Prepare to pay more: Apple's bill of materials (BOM) for the iPhone 18 Pro model with 256GB of storage is expected to jump by approximately 38% compared to the previous generation, according to a new report by the research firm TrendForce. The main driver behind this unusual price hike is the sharp rise in memory and storage component costs.

While the processor and screen were previously the most expensive components in the device, the massive demand for memory from artificial intelligence (AI) data centers, combined with a global shortage, has made memory a dominant and particularly expensive component.

Apple now faces two main options: absorbing part of the cost increase by reducing gross profit margins to maintain demand and market share, or passing the costs on to buyers—a move that is becoming almost inevitable under current market conditions.

This pressure is not unique to Apple and affects the entire smartphone and computer market, with manufacturers of budget devices taking the hardest hit. It is important to clarify that a 38% increase in component costs does not mean the retail price of the iPhone 18 Pro will rise by the same amount, but it does indicate significant upward pressure ahead of the series launch.

If analyst estimates materialize, the price of the iPhone 18 Pro is expected to rise by $150 to $300 compared to the launch prices of the previous generation. The launch price in the USA is expected to jump from $1,099 to a range of $1,299 to $1,399. In Israel, this translates to an estimated starting price of 6,000 to 6,300 shekels (an increase of approximately 1,200 to 1,500 shekels compared to the current Pro model).

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