TF International Securities analyst Ming-Chi Kuo has reported that the primary camera upgrade for the upcoming iPhone 18 Pro and iPhone 18 Pro Max — a variable aperture lens — carries an average component cost roughly 50 percent higher than existing high-end 7P lens modules. The significant cost bump places additional pressure on Apple’s already tight margins as the company grapples with rising memory costs across its product lines.
According to Kuo’s supply chain checks, Chinese manufacturer Sunny Optical has secured 40 to 50 percent of the variable aperture lens orders for the iPhone 18 Pro series, while Largan Precision remains Apple’s primary long-term lens partner. This marks a substantial supply-chain shift, as Sunny Optical previously held much smaller allocations in Apple’s premium camera component orders.
The variable aperture mechanism on the main 48-megapixel sensor will allow the iPhone 18 Pro to dynamically adjust the amount of light entering the lens, improving control over depth of field and low-light exposure. This feature, long available on competing flagship phones from Samsung and Chinese manufacturers, has been repeatedly requested by professional photographers using iPhones as their primary shooting tool.
Kuo also revealed that Apple is planning a more fundamental camera module redesign for 2028. The company intends to phase out the current Flip-Chip (FC) packaging for the ultra-wide camera in favor of an upgraded Chip-on-Board (COB) design. COB packaging allows the image sensor to be mounted directly onto the circuit board, potentially shrinking module size and improving thermal performance at the cost of more complex manufacturing.
The question now is whether Apple will offset the higher camera costs by raising retail prices for the iPhone 18 Pro lineup or absorb the margin hit elsewhere. Given that memory costs have also increased across the board, the combination suggests price increases are a real possibility — though Apple has not yet made any public indication of 2026 flagship pricing.
