Apple still charging 300% of costs on iPhone storage upgrades, says WSJ
Opting for more RAM or storage when buying Apple devices has always been an expensive business, with the company famously charging huge markups. Apple said in its most recent earnings report that even after the price increases, its margins are being squeezed by higher component costs. But an analysis suggests that the company is still charging three times its own costs for higher storage tiers on…
Apple continues to charge exorbitant prices for storage upgrades on its iPhones, according to a Wall Street Journal analysis. Despite recent price increases, the company's profit margins are being pressured by rising component costs. However, the WSJ's calculations reveal that Apple is still charging more than three times its own costs for the higher storage tiers on the iPhone 18 Pro.
Upgrading from 256GB to 1TB on the iPhone 17 Pro cost customers $400, which is nearly a 1,000% markup over Apple's estimated direct cost of $42. While Apple has warned that memory costs will impact holiday quarter profit margins, analysts believe the pressure on margins won't ease anytime soon.
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