iPhone Pro Prices Set to Rise $200: BofA Analyst Warns of AI-Driven Memory Chip Crunch

The AI-Driven Memory Chip Crisis

At the root of the price hike is a structural shift in the memory chip market. AI data centers have exploded in demand for high-bandwidth memory (HBM) and DRAM/NAND chips, competing directly with consumer electronics manufacturers for limited supply . Cook told the Journal that the current level of cost increases was "unsustainable" and that Apple had been trying to shield customers from the hikes but could no longer do so .

The impact is not limited to iPhones. Cook indicated that prices would rise across Apple's product range to offset the memory cost surge . But the Pro iPhones are the most likely candidates for the steepest increases because they use the most memory and storage .

BofA's Updated Financial Estimates

Despite the price hike, Mohan kept his $380 price target unchanged, implying about 28% upside from the stock's level at the time of the note . His earlier pricing models had already embedded a $100 increase; the new note simply layered on the additional $100 for Pro models .

Earlier in 2026, Mohan had applied an elasticity framework to assess the memory headwind and concluded that the impact on Apple's earnings would be modest relative to peers like Dell and HP, given Apple's premium pricing power and brand loyalty . He told CNBC in May 2026 that rising memory costs were "not a reason to dislike Apple at all" .

What This Means for Consumers

If BofA's estimates hold, a potential iPhone 18 Pro or Pro Max arriving in September 2026 could cost roughly $200 more than the equivalent iPhone 17 Pro models . Cook did not confirm timing, but Apple's next major product launch is expected that month . The exact final price will depend on how much of the chip cost Apple decides to pass through, but the direction is clear: the AI boom is now hitting consumer wallets directly through hardware prices.

Key Takeaways

• BofA analyst Wamsi Mohan expects iPhone Pro and Pro Max prices to rise $100 on top of a prior expected $100 increase, for a total of roughly $200 above normal pricing tiers .
• Tim Cook described the memory chip cost surge as a "100-year flood" and said Apple can no longer absorb the increases .
• AI data center demand is the root cause, competing with consumer electronics for limited DRAM/NAND and high-bandwidth memory supply .
• Mohan kept a Buy rating and $380 price target, arguing Apple's pricing power and brand loyalty make the earnings impact manageable .