Apple Looks to Cut iPhone 18 Pro Max OLED Display Costs Amid Rising Memory Chip Prices

Apple is negotiating lower prices for OLED display panels used in the upcoming iPhone 18 Pro Max as it looks to offset rising memory chip costs, according to a report by The Elec.

Apple has proposed paying around $70 per OLED panel for the iPhone 18 Pro Max. Samsung Display and LG Display are expected to supply the panels at an average price of about $66.50, roughly 20% lower than the price paid for OLED panels used in the iPhone 17 Pro Max.

The move comes as Apple faces rising component costs, particularly for memory chips, prompting the company to negotiate lower prices for other key parts.

Display Costs Fall Despite Better Technology

OLED panel prices for iPhones have been declining with each new generation.

OLED panels used in the iPhone 16 Pro Max reportedly cost more than $100 each, while prices fell to around the $80 range for the iPhone 17 Pro Max. The iPhone 18 Pro Max panels are expected to cost even less.

Despite the lower prices, the report said Apple is not expected to compromise on display quality. The iPhone 18 Pro lineup is likely to use Samsung Display's M16 OLED technology, which is expected to offer improvements in brightness, colour reproduction and display lifespan.A

Apple Looks to Offset Rising Memory Costs

According to The Elec, Apple is seeking lower prices for displays and camera modules to balance the rising cost of memory chips.

Quoting an industry official, the report said Apple is demanding significant price reductions from panel suppliers because of higher memory prices. It added that panel makers' profitability in the second half of the year will depend on supply volumes, production yields and their ability to reduce costs.

The report also cited market research firm UBI Research, which estimates that Samsung Display will supply around 46 million OLED panels for the iPhone 18 series this year, while LG Display is expected to ship 41.09 million panels, with most destined for the Pro and Pro Max models.

Memory Chip Crisis Could Push Up iPhone Prices

The developments come as concerns over rising memory costs continue to grow across the consumer electronics industry.

According to an earlier report by IDC, Apple could raise the prices of the iPhone 18 Pro and iPhone 18 Pro Max by up to $200 because of the ongoing memory chip crisis.

The IDC report followed Apple's decision to increase prices for certain iPad and MacBook models as higher memory costs and stronger demand for raw materials continue to put pressure on manufacturing expenses.