iPhone 18 Pro Parts Cost Set to Rise Nearly 40%, Report Says
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Research firm TrendForce has said the cost of parts for the coming iPhone 18 Pro will rise by almost 40%.
This cost is known as the BOM, short for bill of materials, which covers all the parts used to build the phone.
Because of this rise, Apple may need to accept smaller profit margins to keep production levels high.
The report suggests Apple will likely choose to protect shipment numbers rather than raise prices sharply.
The iPhone 18 Pro is also expected to include three new camera upgrades, though details were not given.
Separately, rumors had claimed that chipmaker TSMC was sitting on $1 billion worth of delayed Apple processor orders.
A processor is the main chip that controls how a device works.
Well-known analyst Guo Ming-qi denied this rumor.
He explained that any rise in inventory is a normal part of preparing for a new product launch.
According to Guo, companies build up stock gradually as they get ready to make more devices. This is called a ramp-up.
He said this build-up should not be seen as a sign that Apple has stopped buying chips or that demand has dropped.
Instead, it reflects normal planning ahead of a major launch.
The report gives no further details on exact prices or release dates for the iPhone 18 Pro.
Vocabulary10 words
- BOM
- a list of parts and their total cost
- profit margins
- how much money is made after costs are paid
- shipment
- goods sent out to stores or customers
- upgrades
- improved new versions of something
- processor
- the main chip that runs a device
- inventory
- goods a company stores before selling
- ramp-up
- slowly increasing production
- analyst
- a person who studies a market or company closely
- rumor
- unconfirmed information people talk about
- demand
- how much people want to buy something
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Quiz
Answer key
1. It is rising by almost 40% 2. To sustain shipment numbers 3. It is a normal part of production ramp-up
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Fill-in-the-blank listening
Play the audio again and fill in the missing words as you listen.
Research firm TrendForce has said the cost of parts for the coming iPhone 18 Pro will rise by almost _____.
This cost is known as the _____, short for bill of materials.
Because of this rise, Apple may need to accept smaller profit _____ to keep production levels high.
The report suggests Apple will likely choose to protect _____ numbers rather than raise prices sharply.
The iPhone 18 Pro is also expected to include three new camera _____.
Rumors had claimed that chipmaker TSMC was sitting on $1 billion worth of delayed Apple _____ orders.
Analyst Guo Ming-qi _____ this rumor.
He explained that any rise in _____ is a normal part of preparing for a new product launch.
This is called a _____.
He said this build-up should not be seen as a sign that _____ has dropped.
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