Highlights
- The price of 12GB LPDDR5X RAM for iPhone 17 Pro has jumped from $25–$29 to nearly $70, a 230% increase.
- Apple’s DRAM deals with SK Hynix and Samsung end in January 2026, making renegotiation difficult amid elevated market prices.
- Apple may have to depend more on Samsung for DRAM, potentially leading to higher iPhone prices.
Apple is reportedly facing growing pressure from the ongoing global DRAM shortage, and its impact may first be seen in the iPhone 17 lineup. A new report suggests that a sharp rise in memory costs is beginning to squeeze Apple’s margins, raising concerns over how long the company can absorb these increases without adjusting iPhone pricing.
Apple Faces Rising RAM Costs
According to reports, the cost of 12GB LPDDR5X RAM used in the iPhone 17 Pro models has surged dramatically. The price per unit has reportedly jumped from around $25–$29 to nearly $70, marking an increase of roughly 230 percent. Such a steep rise in component costs could significantly affect profitability, even for a company of Apple’s scale.
Reports indicate that Apple is already working on countermeasures to deal with the situation. While the company is still in a relatively strong position, analysts suggest this buffer may not last indefinitely if memory prices remain elevated.
Apple has managed to shield itself from sudden price fluctuations through long-term supply agreements that lock in component pricing well in advance. However, DRAM appears to be a more difficult challenge to navigate this time.
Apple’s current DRAM supply contracts with SK Hynix and Samsung are said to expire in January 2026. Once these agreements end, Apple will need to renegotiate terms, and given current market conditions, securing prices anywhere near the earlier $25-per-unit level seems unlikely.
Apple May Rely More on Samsung for Future iPhones
The situation becomes more complex when broader industry trends are taken into account. SK Hynix and Micron are reportedly reducing LPDDR memory production as they shift focus toward higher-margin HBM memory, which is in strong demand for AI accelerators and data centre applications. This shift could leave Apple increasingly dependent on Samsung for DRAM supplies, particularly for the iPhone 18 series.
Such reliance could weaken Apple’s negotiating position. If pricing discussions do not go in Apple’s favour, the company may be forced to consider higher iPhone prices. This risk is amplified by reports that the iPhone 18 lineup could adopt six-channel LPDDR5X memory to deliver higher bandwidth and improved AI performance.
FAQs
Q1. Why are RAM costs rising for the iPhone 17 Pro?
Answer. The price of 12GB LPDDR5X RAM has surged from $25–$29 to nearly $70 per unit, a 230% increase due to the global DRAM shortage.
Q2. When do Apple’s current DRAM supply contracts expire?
Answer. Apple’s contracts with SK Hynix and Samsung are set to expire in January 2026, after which new terms must be negotiated.
Q3. How might industry trends affect Apple’s future DRAM supply?
Answer. With SK Hynix and Micron shifting focus to HBM memory, Apple may rely more heavily on Samsung for DRAM, potentially impacting costs and iPhone pricing.