Apple Inc. (NASDAQ: AAPL) is projected to significantly increase its manufacturing costs for the upcoming iPhone 18 Pro Max, with the bill of materials (BOM) potentially rising from approximately $500 to $800, driven largely by expensive memory chips and a new-generation processor. Market research from Counterpoint Research indicates this increase could hit $300 compared to its predecessor.
Key suppliers benefiting from Apple’s rising costs include SanDisk (NASDAQ: SNDK) and Taiwan Semiconductor Manufacturing Co. (NYSE: TSM). Sandisk’s shares surged 539% in 2026, fueled by a scarcity in NAND flash storage, which is projected to see a 234% price increase. TSMC is utilizing its new 2-nanometer process node for Apple’s devices, which is sold out until 2028 and carries a premium over previous generations.
Apple’s smartphone shipments rose by over 6% in 2025, suggesting a solid demand for the new iPhones despite broader market struggles, as it seeks to upgrade a large installed user base of older models. This scenario presents growth opportunities for both Sandisk and TSMC in the face of high component costs.
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