{
    "success": true,
    "data": {
        "id": 1912565,
        "msgid": "iphone-production-costs-surge-to-irrational-levels-impacting-apple-and-android-makers-1786438373",
        "date": "2026-08-11 15:15:00",
        "title": "iPhone Production Costs Surge to 'Irrational' Levels, Impacting Apple and Android Makers",
        "author": "",
        "source": "CNBC",
        "tags": "",
        "topic": "Technology",
        "summary": "Research firm TrendForce reports that Apple is facing a sharp increase in component costs for the upcoming iPhone 18, with the Bill of Materials potentially rising by 38% year-on-year. To avoid weakening consumer demand, Apple is expected to absorb some of these costs by reducing its gross margins rather than raising retail prices. The report notes that Android manufacturers, particularly those in the entry-level and mid-range segments, face even greater pressure and are more likely to pass the increased costs directly onto consumers.",
        "content": "<p>Jakarta, CNBC Indonesia - Research firm TrendForce has revealed that\nApple is facing a rise in component costs that is directly impacting the\nproduction cost of the iPhone 18. The technology giant is reportedly\nmaking efforts to avoid increasing the retail price for consumers.<\/p>\n<p>TrendForce cited the example of the Bill of Materials (BOM) for the\n256 GB iPhone 18 model, which is likely to surge by up to 38%\nyear-on-year (YoY).<\/p>\n<p>\u201cApple may offset some of the costs by reducing its gross profit\nmargin to prevent weakening consumer demand. The goal is to keep prices\naffordable, maintain shipment volumes, and increase market share,\u201d\nTrendForce explained on its official website.<\/p>\n<p>Based on its analysis for the 256 GB iPhone Pro variant, the BOM has\nbeen increasing continuously. TrendForce noted a rise from 10% a year\nago, surging to 34% in the third quarter of 2026, and is expected to\nexceed 40% in the first half of next year.<\/p>\n<p>For the iPhone 18, Apple is likely to implement a strategy similar to\nits latest MacBook launch. At that time, the company sacrificed a\nportion of its gross margin so that the selling price did not increase,\nwhich ultimately helped maintain shipment volumes.<\/p>\n<p>Another possibility is that the company will review its pricing\nstrategy for older iPhone models. According to TrendForce, Apple could\npotentially raise the prices of older series concurrently with the\nlaunch of its newest series as a measure to offset the rising memory\ncosts.<\/p>\n<p>On the other hand, the burden borne by Android phone manufacturers is\nsaid to be much heavier. While Apple\u2014as the industry\u2019s most profitable\ncompany\u2014is experiencing this pressure, Android manufacturers will likely\npass most of the increased component costs onto consumers to maintain\nprofits and avoid losses.<\/p>\n<p>The heaviest pressure will be felt in the entry-level and mid-range\nphone segments. The very thin profit margins in these segments leave\nlittle room to absorb the higher production cost surges.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/iphone-production-costs-surge-to-irrational-levels-impacting-apple-and-android-makers-1786438373",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}