Apple is facing a major challenge ahead of the iPhone 17 launch as the cost of memory used in its premium models has increased sharply. Reports say the price of 12GB LPDDR5x RAM, used in the iPhone 17 Pro, Pro Max, and the new iPhone Air, has gone up by around 230%.
This sudden price jump is forcing Apple to renegotiate deals with its main memory supplier, Samsung.
Why RAM Prices Have Gone Up So Much
Earlier, Apple was paying about $25 to $29 per unit for these RAM modules. Now, the same memory reportedly costs around $70 per unit.
For a company that sells millions of iPhones, this is a huge problem. A $40–45 increase per phone can massively raise production costs.
Apple had stocked up on RAM earlier to protect itself from short-term price changes. But with strong demand for the iPhone 17 models, those reserves are running low, leaving Apple exposed to today’s much higher market prices.
Apple Tried to Find Other Suppliers — But Failed
To reduce costs, Apple reportedly tried to move away from relying only on Samsung by finding other memory suppliers. The idea was to create competition and bring prices down.
However, this plan didn’t work out. Other suppliers were either unable to meet Apple’s quality standards or couldn’t supply RAM in such large quantities. As a result, Apple has returned to the negotiating table with Samsung to work out new pricing terms.
AI Boom Is Causing a Global Memory Shortage
This RAM price surge isn’t just Apple’s problem. It’s part of a bigger global issue.
A large amount of memory production is now being redirected toward:
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AI servers
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Data centres
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High-performance computing
Because of this, less memory is available for smartphones, pushing prices higher for all phone makers. Industry reports suggest this trend could even cause global smartphone shipments to fall by about 2% in 2026.
What This Means for iPhone Prices
This situation puts Apple in a tough spot:
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Absorb the higher cost and earn less profit, or
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Pass the cost to customers through higher prices
While Apple has denied plans to raise prices for the standard iPhone 17, continued pressure on high-end components could affect future models like the iPhone 18.
Smaller smartphone brands may be hit even harder. If Apple is struggling to secure affordable RAM, companies with less buying power could face even higher costs—leading to more expensive flagship phones across the market, including Android devices.
What to Expect Next
All eyes are now on Apple and Samsung’s negotiations. If memory prices remain high through 2026, premium smartphones may slowly become more expensive.
In short, the growing demand for AI is reshaping the tech industry—and smartphone buyers may soon feel the impact in their wallets.
