iPhone 18 Pro Could Cost $1,299 — AI Is Eating Apple’s Chip Supply

WSJ teardown: iPhone memory costs jumped from $39 to $145 (3.7x). Storage from $13 to $51 (3.9x). Apple’s total cost per phone: $582 → $726. Estimated retail: $1,099 → $1,299.

The cause: AI is buying up global memory and chip supply. Nvidia dethroned Apple as TSMC’s #1 customer. RAM prices doubled since October. Tim Cook: price increases are “unavoidable.”

Why this matters:

• Storage also 3.9x ($13→$51). Apple’s total cost per phone: $582→$726
• Nvidia dethroned Apple as TSMC’s #1 customer. RAM prices doubled since Oct 2025
• TSMC CEO: shortage lasts ‘for years.’ Tim Cook: price increases ‘unavoidable’

The AI Supercycle: Layer 2 (foundries) constrains Layer 8 (devices). The AI buildout taxes companies that aren’t even in it.

Read the full analysis + WSJ teardown data →