Memory Costs Rise! Apple Cuts iPhone 18 OLED Prices

According to industry sources on July 24, Apple has proposed setting the price of OLED panels for its upcoming iPhone 18 Pro Max at around $70 per unit, as rising memory chip prices continue to increase smartphone manufacturing costs.

Industry insiders estimate that Samsung Display and LG Display are currently offering OLED panels for the iPhone 18 Pro Max at an average price of approximately $66.5, which is even lower than Apple’s proposed price. The figure represents a decline of about 20% compared with the previous-generation model.

OLED panel prices for iPhones have traditionally decreased with each new product generation. Depending on supply timing and contract conditions, the OLED panel price for the iPhone 16 Pro Max once exceeded $100, while the iPhone 17 Pro Max panel price dropped to around $80. The expected price for the iPhone 18 Pro Max panel is approximately 20% lower than that of the iPhone 16 Pro Max, marking a larger-than-usual reduction beyond the typical generational price decline.

Notably, the iPhone 18 series OLED panels will adopt Samsung Display’s latest M16 organic material technology, which is designed to improve light efficiency, extend panel lifespan, and enhance color performance. Panel manufacturers will need to optimize production processes and stabilize yields to support the new material. Despite higher technical requirements and increased manufacturing complexity, OLED panel prices are expected to decline further.

The price pressure is also linked to rising memory chip costs. Smartphone manufacturers are seeking to offset higher component expenses by reducing procurement costs for other key parts, including display panels and camera modules.

Samsung Display President Lee Cheong stated at the K-Display 2026 exhibition on July 22 that “the industry environment is extremely challenging this year due to chip inflation,” adding that “pressure to reduce component and display prices has become significant.” LG Display President Jeong Cheol-dong also noted that the company has experienced some pricing pressure but said the impact remains manageable due to ongoing cost innovation efforts.

According to market research firm UBI Research, Samsung Display is expected to supply approximately 46 million OLED panels for the iPhone 18 series this year, including 2 million units for the standard model, 18 million units for the Pro model, and 26 million units for the Pro Max model. LG Display is projected to supply around 41.09 million panels, including 1.09 million standard models, 19 million Pro models, and 21 million Pro Max models.

An industry insider commented that Apple is using rising memory costs as a reason to push for significant OLED panel price reductions. Even high-end panels featuring the latest organic materials are facing declining prices, meaning display manufacturers’ profitability in the second half of the year will largely depend on shipment volume, production yield improvements, and cost reduction capabilities.