Apple faces significant challenges due to the global shortage of DRAM memory, which is beginning to negatively impact its profit margins. Evidence suggests that the “iPhone 17” series may be the first victims of this shortage.
Reports indicate a significant increase in the price of 12GB LPDDR5X memory, jumping from about $25-29 to nearly $70 per unit, an increase of approximately 230%. Although Apple typically relies on long-term supply agreements, the extreme fluctuations in the memory market make absorbing this increase extremely difficult.
Things are further complicated as supply contracts with SK Hynix and Samsung approach their end in early 2026. At the same time, memory manufacturers are moving towards reducing LPDDR memory production and focusing instead on the more profitable and in-demand HBM memory in the field of artificial intelligence. This shift may increase Apple’s reliance on Samsung and weaken its position in future negotiations.
Analysts expect that continued price increases may force Apple to pass some of these costs on to consumers, which could lead to a potential increase in iPhone prices in the near future.
