Apple still making 300% profit on iPhone storage upgrades, says WSJ
9to5Mac • • business
Key Points:
- Apple continues to charge significant markups on RAM and storage upgrades for its devices, with recent analysis showing the company charges about three times its own costs for higher storage tiers on the iPhone 18 Pro.
- Despite recent price increases, Apple’s profit margins are being squeezed due to rising component costs, particularly memory, which the company warns will reduce holiday quarter profits.
- Historical data shows extreme markups, such as a $400 upgrade cost from 256GB to 1TB on the iPhone 17 Pro, while Apple’s actual cost was only around $42, reflecting nearly a 1,000% markup.
- The Wall Street Journal analysis indicates that although Apple’s direct costs for storage have increased substantially, the company still charges customers more than triple those costs for premium storage options.
- Apple’s margin pressures from higher memory costs are expected to persist, even as the company maintains its premium pricing strategy on device configurations.
