News
Apple · DRAM · Smartphone Costs · Supply Chain
Apple faces a significant 230 percent premium for 12GB LPDDR5X RAM chips in its iPhone 17 models, as reported by Wccftech, due to a global DRAM shortage, escalating chip costs from $25-$29 to approximately $70 per unit.
This sharp increase puts considerable pressure on Apple's high-end smartphone margins, especially after the iPhone 17 Pro and Pro Max already saw price hikes this year. The DRAM shortage, expected to persist until late 2027, complicates Apple's supply chain as long-term agreements with Samsung and SK hynix expire in early 2026.
While Apple strategically stockpiled memory to offer short-term protection, future iPhone 18 models, requiring advanced six-channel LPDDR5X memory for AI applications, face further price increase risks. Apple's reliance on Samsung for 60 to 70 percent of its memory supplies adds to the challenge.
The company is leveraging vertical integration, developing its own A series chips and C2 5G modems, to reduce overall chipset costs and partially offset rising component prices. The broader smartphone market will see memory costs become a critical factor for product positioning and profitability, forcing other manufacturers to make concessions on specifications, margins, or consumer prices.
