Right now, there is a worldwide shortage of DRAM (Dynamic Random Access Memory), and this shortage is impacting the margins of global tech giant Apple. Apple’s margins are shrinking, and the first impact of this is likely to be seen on the iPhone 17 lineup, which could come under pressure. A new report claims that Apple is facing rising prices for new DRAM right now. This raises the question as to how long will Apple be able to bear this cost itself and maintain its policy of not burdening customers. According to the report, the price of 12GB LPDDR5X RAM used in the iPhone 17 Pro model has increased the most. Its price has increased from $25-29 per unit to $70 per unit, a huge increase of 230 percent. This has undoubtedly affected every smartphone manufacturing company.
Negotiations will be difficult for Apple
Previously, Apple was not much affected by such issues because it mostly entered into long-term supply contracts in which component prices were fixed in advance. However, this time, rising DRAM prices are proving to be more challenging for Apple. This is because according to rumors, Apple’s existing supply agreements with SK Hynix and Samsung are set to expire in January 2026, and once they expire, Apple will have to renegotiate the prices according to the current market conditions. Given current market conditions, it seems unlikely the company will be able to get a deal close to the old rate of $25 per unit. Current rumors suggest that Apple is already preparing to deal with this, and although the company is in a pretty strong position right now, its buffer won’t last forever.
Apple will have to depend on Samsung
Looking at larger industry trends, the situation is likely to worsen as SK Hynix and Micron push to reduce LPDDR memory chip production and focus on high-margin HBM memory. This is because the demand for HBM memory is increasing rapidly for AI accelerators and data centers. This would force Apple to rely heavily on Samsung for its RAM needs. Such a monopoly would certainly impact Apple’s bargaining power and could force the company to raise iPhone prices. This is especially true considering the rumors that the company is trying to adopt six-channel LPDDR5X memory for the iPhone 18 lineup to improve bandwidth and AI performance.
increased burden on customers
This means Apple will need even more DRAM at a time when prices are already rising. If DRAM prices remain around $70 per unit, Apple will have no choice but to pass on some of the increased costs to customers.
