The worldwide shortage of DRAM chips is beginning to impact Apple’s profits, and the iPhone 17 series smartphones might be the first to suffer. According to a fresh report, the company has encountered a steep rise in prices for random-access memory, which casts doubt on how long it can absorb escalating component expenses without passing them on to buyers. It is stated that the cost of a 12GB LPDDR5X memory module, utilized in the iPhone 17 Pro models, has soared from $25–29 to $70 per unit. This is an astonishing 230% surge that will surely affect any business. Typically, Apple avoids such shocks thanks to long-term procurement agreements that lock in component pricing well before product launch. However, the DRAM issue this time appears more significant. Rumors suggest that Apple’s current DRAM supply pacts with SK Hynix and Samsung expire in January 2026. After those contracts end, Apple will need to renegotiate prices, and in the present market conditions, it’s hard to imagine the firm managing to sustain the prior $25 per module rate. Recent whispers indicate that Apple is already preparing countermeasures. The company remains in a comparatively strong position, but this buffer won’t last forever. Apple is forced to collaborate with Samsung The situation looks even more critical when considering broader industry trends. SK Hynix and Micron are reportedly cutting LPDDR memory output to concentrate on higher-margin HBM memory, which sees massive demand for AI accelerators and data centers. Consequently, Apple might end up heavily reliant on Samsung for RAM supplies for the iPhone 18 series. Such a near-monopoly situation will weaken Apple’s bargaining power. If negotiations falter, the firm might have to increase iPhone prices, especially since rumors suggest the iPhone 18 lineup will switch to six-channel LPDDR5X memory to boost bandwidth and AI performance. This upgrade seems sensible, but it also means Apple will require even more DRAM at a time when costs are already inflated. If DRAM expenses remain around $70 per module, Apple may have no option but to shift some of those costs onto consumers. Rutab.net
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