Why your next iPhone could cost more as memory prices surge
By Paulette Mboga, September 8, 2026Apple’s next iPhone lineup could come with a higher price tag as the cost of memory continues to rise.
The increase is being driven partly by strong demand for memory from the artificial intelligence industry, while the wider memory market was already struggling to keep up with demand before the AI boom.
The expected increase could make the iPhone 18 Pro Apple’s most expensive Pro model yet. Market research firm TrendForce estimates that prices for the new iPhone lineup could rise by between 10 and 20 per cent, with higher memory costs putting pressure on Apple and other smartphone makers.
Memory costs are putting pressure on phones
TrendForce estimates that the 256GB iPhone 18 Pro could cost up to US$1,319, about Ksh171,000. That would be a significant increase from the US$1,099, about Ksh143,000 starting price of the iPhone 17 Pro and the US$1,199, about Ksh156,000 price of the iPhone 17 Pro Max.
The research firm said memory costs for the 256GB iPhone 18 Pro were estimated to be almost 400 per cent higher than they were at the same time last year. Despite the sharp increase, TrendForce described Apple’s expected pricing approach as moderate.
Apple is expected to absorb some of the higher component costs instead of passing the full increase to customers. TrendForce said the move would help the company maintain its market share at a time when the global economy remains weak, and consumers are becoming more careful with their spending.
AI is adding to an older memory problem
AI has become a major source of demand for memory, but the current shortage did not start with ChatGPT. The memory industry had already been facing problems keeping up with demand before the rapid growth of AI added further pressure.
The shortage is reversing a long period when falling memory costs helped make electronic devices more powerful without pushing prices up sharply. The words “memory prices” and “memory shortage” appeared in 473 company transcripts last quarter, according to data from AlphaSense.
Manish Bhatia, president and COO of Micron, said the industry needs to increase its production capacity to deal with the growing demand.
“We need to build more wafer capacity,” Bhatia said.
He explained that the challenge is different from previous years because technology alone is no longer enough to keep up with demand.
Foldable iPhone could cost even more
Apple is expected to unveil the iPhone 18 Pro, Pro Max and its first foldable iPhone at a product launch in California on Wednesday, September 9, 2026. The standard iPhone 18 and other models are expected to follow in the first quarter of next year.
TrendForce estimates that the foldable iPhone could start between US$2,099, about Ksh272,000 and US$2,299, about Ksh298,000, while the highest-end version could cost more than US$3,000, about Ksh389,000.