The worldwide boom in artificial intelligence has sparked unforeseen issues in the electronics world. Major memory chip manufacturers have shifted main production capacity toward creating expensive HBM memory for servers. Due to this, the supply of standard memory has decreased, and even Apple is struggling to cope, preparing to raise prices for the iPhone 17, analysts report.
The current Cupertino agreements with suppliers expire in January 2026. Contract renewals will occur under new terms, inevitably increasing the firm’s expenditures on components. Analysts worry that Apple will pass the heightened costs onto consumers, and the current iPhone 17 lineup, future iPhone 18s, anticipated folding smartphones, and MacBooks utilizing M6 processors are at risk of becoming more expensive.
Experts believe Apple will maintain the present price levels for as long as possible. The company possesses a substantial financial cushion, and moreover, the Cupertino firm is actively substituting third-party components with its own designs. For instance, incorporating the proprietary C1 5G modem into the iPhone 16e has allowed a reduction in that part’s cost by about 10%. Such savings across millions of units can partially offset the increase in RAM expense and soften the impact on the wallets of the company’s enthusiasts.
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