business
Apple Still Charges Triple Its Costs for iPhone Storage Upgrades, WSJ Says
Apple still charges about three times its costs for iPhone storage upgrades, according to a WSJ analysis.
Key points
- A Wall Street Journal analysis put Apple's estimated direct cost for the iPhone 18 Pro's 256GB-to-1TB upgrade at $192.
- On the iPhone 17 Pro, the same upgrade cost buyers $400, while Apple's cost at the time was $42.
- Apple warned that memory costs will reduce its holiday quarter profit margins.
Why it matters. Apple's margins are under pressure from higher memory costs, and Parekh said that pressure is not expected to ease anytime soon.
A Wall Street Journal analysis, cited by Macworld, found Apple charges three times its direct costs for higher iPhone 18 Pro storage. Moving from 256GB to 1TB adds $600 to the price, against an estimated direct cost of $192. On the iPhone 17 Pro, the same upgrade cost $400 against Apple's $42 cost, almost a 1,000% markup.
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Apple Still Charges Triple Its Costs for iPhone Storage Upgrades, WSJ Says
The Wall Street Journal reports that Apple still charges about 300% of its costs for higher-capacity storage upgrades on its devices. The analysis, as summarised by 9to5Mac, suggests the markup persists despite recent price increases. Apple said in its most recent earnings report that higher component costs are squeezing its margins. The gap between upgrade pricing and component costs has long drawn criticism from consumers. The snippet does not detail the methodology behind the estimate, so the figure should be read as the WSJ's analysis rather than an Apple disclosure.