The ongoing global DRAM shortage is starting to squeeze Apple’s margins, and the iPhone 17 lineup may be the first to feel that pressure. A new report claims Apple is facing a dramatic spike in DRAM, raising questions about how much longer it can absorb rising component costs without passing them on to consumers.
According to the report, the cost of 12GB LPDDR5X RAM used in the iPhone 17 Pro models has surged from $25 to $29 per unit to $70. That’s a staggering 230% surge, which would unsurprisingly hurt almost any company.
Apple usually avoids these shocks thanks to long-term supply contracts that lock in component pricing well in advance. But DRAM appears to be a tougher problem for Apple to sidestep this time.
Apple’s existing DRAM supply agreements with SK Hynix and Samsung are rumored to expire in January 2026. Once those contracts end, Apple will need to renegotiate pricing, and under current market conditions, it’s hard to imagine the company securing anything close to the old $25-per-unit rate.
The latest rumors suggest Apple is already preparing countermeasures. The company is relatively in a strong position for now, but that buffer won’t last forever.
Apple is also forced to join hands with Samsung
The situation appears even more dire when considering broader industry trends. SK Hynix and Micron are reportedly scaling back LPDDR memory production to focus on high-margin HBM memory, which is in massive demand for AI accelerators and data centers. As a result, Apple may end up relying heavily on Samsung for RAM in the iPhone 18 series.
A near-monopoly of that kind would weaken Apple’s negotiating power. If talks fall apart, Apple could be forced to raise iPhone prices, especially since the iPhone 18 lineup is rumored to adopt six-channel LPDDR5X memory to boost bandwidth and AI performance.
The upgrade makes sense on paper, but it also means Apple will need even more DRAM at a time when prices are already inflated.
If DRAM costs stay near $70 per unit, Apple may have little choice but to pass some of that expense on to consumers.
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