Will Apple Raise iPhone Prices Due to Skyrocketing Memory Chip Prices?

There has been a batch of treatment lately astir skyrocketing representation spot prices, and however that mightiness interaction the iPhone and different Apple devices.


For those who are not caught up to speed, prices for some DRAM and NAND retention chips person been surging lately owed to accrued request from companies gathering retired AI servers. Nvidia has reportedly surpassed Apple arsenic chipmaker TSMC's biggest customer arsenic a effect of this boom, contempt record-breaking iPhone sales past quarter.

The request for representation chips for AI servers is truthful precocious close present that reports person indicated that chipmakers specified arsenic TSMC, Samsung, and SK Hynix cannot support up with proviso contempt operating astatine oregon adjacent afloat capacity. This supply-demand imbalance is allowing for chipmakers to rise prices for representation chips, with Taiwanese probe steadfast TrendForce contiguous estimating that accepted DRAM and NAND declaration prices could emergence up to 90–95% and up to 55-60% this quarter, respectively, compared to past quarter.

Apple surely inactive has plentifulness of leverage arsenic 1 of the world's largest user electronics makers, but it is not wholly immune to the pricing situation.

On an net telephone past week, Apple CEO Tim Cook acknowledged that the rising spot prices will person a "bit much of an impact" connected the company's gross borderline successful the existent quarter. Nevertheless, Apple forecasted that its gross volition emergence 13% to 16% successful the 4th connected a year-over-year basis, truthful the institution inactive expects growth.

Cook said Apple "will look astatine a scope of options to woody with" the rising prices, if necessary, but helium did not notation immoderate circumstantial plans.

While the concern is rapidly evolving, it seems improbable for present that 1 of those measures would beryllium raising iPhone prices, for a fewer reasons.

First, Apple forecasted that its wide gross borderline volition stay beardown astatine 48% to 49% successful the existent quarter, truthful the institution is managing for now.

Second, Taiwanese proviso concatenation work DigiTimes contiguous reported that immoderate suppliers expect Apple to intensify its cost-cutting demands going forward. It is unclear if this refers to DRAM and NAND spot suppliers, oregon if Apple volition effort to negociate much favorable deals with suppliers of different components to offset the impact.

Apple has historically been highly delicate astir passing connected terms increases to customers, and it is known to person fantabulous proviso concatenation management.

In enactment with that, proviso concatenation expert Ming-Chi Kuo precocious said that Apple's existent program for the iPhone 18 Pro models aboriginal this twelvemonth is to "avoid raising prices arsenic overmuch arsenic possible." He predicted that Apple volition "at slightest support the starting terms flat," suggesting that iPhone 18 Pro models volition not outgo more than iPhone 17 Pro models.

Kuo was specifically commenting connected starting prices, truthful it remains to beryllium seen if Apple increases the prices of its already-overpriced retention upgrade options.

Related Reading: Apple May Break a 10-Year Chip Strategy
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