Memory chip costs are the main driver behind the price surge. Memory prices have jumped five to seven times since early 2025, shifting the biggest expense from traditional components like displays and application processors directly to storage and RAM. To keep devices affordable and maintain sales volumes, Apple may absorb part of the cost surge by trimming its gross margins. The company could also hike prices on older iPhone models alongside the launch to cushion the financial impact. So far, Apple Watch and iPhone prices haven’t increased yet, but that’s likely to change once September updates are announced.