Apple is facing a significant challenge as the global memory chip crisis begins to erode its long-standing cost advantages. The upcoming iPhone 17 series, particularly the iPhone 17 Pro and iPhone 17 Pro Max, is expected to feel the impact as reports reveal a dramatic spike in RAM prices that could disrupt Apple’s profit margins.
According to recent industry reports, Apple is dealing with a 230% increase in RAM costs for the iPhone 17 Pro models. This surge highlights how even tech giants with massive purchasing power are struggling to shield themselves from the ongoing semiconductor and memory shortage fueled by AI, data centers, and high-end consumer electronics.
First iPhones with 12GB RAM Face Cost Explosion
The iPhone 17 Pro and Pro Max are rumored to be the first iPhone models equipped with 12GB of RAM, a major leap aimed at supporting advanced AI features, multitasking, and future-proof performance. Earlier this year, LPDDR5X 12GB RAM modules were priced between USD 25 and USD 29 per unit.
However, a report from reliable leaker yeux1122 claims that prices for the same LPDDR5X chips have now soared to around USD 70 per unit. This represents an astonishing 230% increase in less than one year, underscoring how severe the current memory supply crunch has become.
For Apple, which ships tens of millions of iPhones annually, even small increases in component costs can translate into billions of dollars in additional expenses.
Apple’s Long-Term Supply Contracts Under Threat
Historically, Apple has been able to avoid such shocks by securing long-term supply contracts that lock in component prices well in advance. This strategy has helped the company maintain stable pricing and healthy margins even during turbulent market conditions.
However, current reports suggest that Apple’s RAM supply agreements with SK Hynix and Samsung are set to expire in January 2026. Once these contracts end, Apple will be forced to renegotiate pricing in a market where memory demand continues to far exceed supply.
Given the current conditions, industry analysts believe Apple will struggle to secure LPDDR5X RAM anywhere near its previous cost of USD 25 per unit, as cited by Wccftech on Saturday (December 27, 2025).
Short-Term Buffer, Long-Term Risk
Rumors indicate that Apple anticipated the price surge and stockpiled large quantities of RAM earlier this year. This proactive move has allowed the company to maintain a relatively strong negotiating position in the short term. However, this buffer is unlikely to last indefinitely if the memory crisis persists.
If Apple fails to contain these rising costs, the company may eventually be forced to raise iPhone prices in future generations. Analysts suggest that the iPhone 18 series could be particularly vulnerable, especially as it is rumored to adopt six-channel LPDDR5X memory, a configuration designed to boost bandwidth and enhance AI performance.
Preparing for iPhone 18 Production
Apple is reportedly exploring ways to diversify its supplier base beyond Samsung, which currently accounts for an estimated 60–70% of Apple’s RAM supply. With mass production of the iPhone 18 series expected to begin in February 2026, Apple has limited time to finalize its sourcing strategy.
Securing alternative suppliers or renegotiating terms under volatile market conditions will be crucial to preventing further margin erosion. Failure to do so could lead not only to higher iPhone prices but also to tighter supply during launch periods.
Memory Crisis Expected to Last Until 2027
Industry forecasts paint a grim picture for the memory market. The global RAM shortage is expected to continue until at least Q4 2027, driven by surging demand from AI servers, cloud infrastructure, and next-generation smartphones.
Apple is not alone in facing these challenges. Competitors are already feeling the pressure. Xiaomi, one of Apple’s key rivals, has reportedly increased the price of its latest flagship, the Xiaomi 17 Ultra, citing RAM scarcity as a primary reason.
This trend suggests that higher smartphone prices could become the new normal, especially for premium devices that rely on high-capacity, high-speed memory.
A Turning Point for Smartphone Pricing?
The sharp rise in RAM prices may mark a turning point for the smartphone industry. As devices increasingly depend on AI-driven features, the demand for advanced memory solutions will only intensify. For Apple, maintaining its balance between innovation, performance, and pricing will be more challenging than ever.
Whether Apple absorbs these costs or passes them on to consumers remains to be seen. What is clear, however, is that the memory crisis is no longer a distant supply-chain issue—it is now directly shaping the future of flagship smartphones.
