Pricier iPhones? Global memory chip crunch puts spotlight on Apple

A global shortage of smartphone memory chips is forcing the industry to rethink production plans and prices, and Apple is in the middle of it. Supply of DRAM and NAND chips has tightened after manufacturers cut investment during a post-pandemic slump, just as demand rebounded on the back of AI-related hardware and a broader electronics recovery. That mismatch has pushed up memory prices and raised questions over whether flagship phones, including upcoming iPhones, will get more expensive.

Analysts say Apple is better positioned than most rivals because of long, deep supply relationships with Samsung Electronics, SK Hynix and Micron. Its scale and purchasing power mean it is likely to secure enough memory to keep iPhone production on track, while smaller brands may face component shortages or be forced to trim features. Still, higher memory costs leave Apple with a choice familiar to the rest of the industry: absorb thinner margins or pass some of the increase on to customers through higher handset prices or by limiting memory options on lower-end models.