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The ongoing RAM crisis is affecting every corner of the tech world, and even Apple, giant though it is, may soon feel knock on effects of AI's data center greed. Recently, TrendForce reported that Samsung could raise iPhone memory prices by over 80%, while other memory brands like SK Hynix could raise component prices by nearly double.
Despite those massive price hikes, supply chain analyst Ming-Chi Kuo believes Apple won't raise prices on the new iPhone 18 models that are expected to launch in September.
In a report, Kuo noted that pricing rumors regarding LPDDR memory are close to what he's seeing, though he says NAND flash prices, commonly used in smartphones, are lower. He says Apple has been forced to negotiate iPhone memory prices quarterly rather than every six months.
This means that even Apple can't lock down memory pricing for more than 3 months at a time. Kuo claims that prices are just going up each quarter.
"The fact that Apple can lock in a deal like this shows just how much leverage they have," Kuo points out.
What this means for the iPhone 18
Apple will have to eat the higher costs, but according to Kuo, Apple will use the "market chaos" to bring in more customers. We may get a sense of Apple's plans from how execs discuss the RAM crisis during the company's earnings call this week.
For now, Kuo asserts that the iPhone 18 will have the same starting price as the iPhone 17. This seems to align with an earlier rumor that the base model for each iPhone 18 will stay the same price, while higher-storage models might cost more.
Here are the current iPhone 17 prices:
- iPhone 17: from $799 @ Apple
- iPhone 17 Pro: from $1,099 @ Apple
- iPhone 17 Pro Max: from $1,199 @ Apple
- iPhone 17 Air: from $999 @ Apple
Forebodingly, Kuo warns that other components, not just memory and T-Glass (which form the basis of PCBs), will run short as AI server farms eat up supply.
"Other components could also run short as the AI server boom continues to squeeze the rest of the supply chain."
The iPhone 18 Pro and iPhone 18 Pro Max are expected to arrive this September alongside the much-rumored iPhone Fold. The basic iPhone 18 will reportedly come next spring, along with the iPhone Air 2, as part of a new split iPhone launch strategy.
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