Apple faces major RAM cost spike, which could increase iPhone 17 Pro prices
Apple may be confronting a significant rise in component costs for the iPhone 17 Pro lineup, driven largely by a dramatic 230 % increase in DRAM pricing for the high-capacity memory chips used in its flagship models. According to the latest report, the cost of 12GB LPDDR5X RAM has jumped from about $25 – $29 (~RM101 – ~RM117) per unit to roughly $70 (~RM283), which could put pressure on Apple’s margins if the trend continues.
Why Memory Prices Are Soaring
This unusual spike is tied to the broader global memory shortage, where manufacturers like SK Hynix and Micron are reportedly shifting production capacity away from standard mobile DRAM toward the booming high-bandwidth memory (HBM) segment demanded by AI and data-centre clients. As production of traditional LPDDR chips tightens, prices have climbed sharply, leaving even deep-pocketed companies like Apple feeling the squeeze.
Apple has historically insulated its products from short-term component price volatility through long-term supply contracts, typically securing predictable pricing by locking in deals well ahead of production runs. However, those agreements for LPDDR memory (particularly from major suppliers such as SK Hynix and Samsung) are expected to expire in January 2026, complicating negotiations in an already constrained market.
Potential Ripple Effects on Apple’s Strategy
With a costly memory landscape looming, Apple is reportedly preparing contingency plans, including potentially increasing its reliance on Samsung for LPDDR components. Industry coverage suggests Samsung could supply an increasingly large share of DRAM in upcoming iPhone models, as rival suppliers pivot toward other memory types.
Some analysts warn that if RAM prices remain elevated, Apple may eventually pass part of the cost on to consumers, especially in future iPhone generations such as the expected next-year lineup, since DRAM is a substantial cost driver in premium smartphones.
Broader Industry Memory Crunch
The issue Apple is facing isn’t isolated. A wider global memory shortage is affecting both smartphones and PCs, with analysts forecasting that elevated DRAM costs could persist well into 2027. That could push average device prices higher or force manufacturers to re-evaluate specs and supply chains.
For now, Apple’s strength in securing supply deals gives it some buffer, but as memory markets continue to evolve, buyers and industry watchers alike will be keeping a close eye on how Apple balances performance, cost and pricing in future iPhone releases. Stay tuned for more trending tech news at TechNave.com.
