Recent reports reveal that the memory used in the upcoming iPhone 17 Pro models has become significantly more expensive. The price for each unit of this 12GB memory has soared from about $25–$29 to an astonishing $70, which is an increase of 230 per cent. This sharp rise in costs is impacting the entire smartphone industry, affecting all manufacturers in some way.
Challenging negotiations ahead for Apple
Apple usually protects itself from sudden price changes by signing long-term contracts that keep the costs of its components stable. However, they are facing a new challenge with the rising prices of DRAM, a type of memory used in many devices. There are rumours that Apple's current contracts with major suppliers SK Hynix and Samsung will end in January 2026, which could affect pricing moving forward.
Once these contracts conclude, Apple will be forced to renegotiate under current market conditions. Given the sharp upward trend, it is highly unlikely the company can secure a deal anywhere near the previous $25-per-unit rate. While Apple is currently operating on its existing supply buffer, that protection is only temporary.
A growing reliance on Samsung
The situation is further complicated by a broader shift in the semiconductor industry. SK Hynix and Micron are reportedly reducing their production of LPDDR memory chips to focus on high-margin High Bandwidth Memory (HBM), which is in massive demand for AI accelerators and data centers.
Samsung is now the main supplier for Apple, which means they hold a lot of power in their business relationship. This situation makes it harder for Apple to negotiate better terms. Additionally, there are speculations that Apple will use a new type of memory called six-channel LPDDR5X in the upcoming iPhone 18. This change is expected to improve the phone's speed and support for artificial intelligence features.
Increased financial burden on consumers
Apple is set to make some big upgrades in its technology, which will mean each device will need more memory than before, just as memory prices are at a high point. If the cost of this memory stays around $70, Apple might have to raise the prices of their products, including future iPhone models, to cover these extra costs. This could lead to higher prices for consumers when they shop for new iPhones.
