Shifts in the global semiconductor market are beginning to ripple through the smartphone industry, with Apple now facing the prospect of higher component costs for future iPhones. The change is being driven by growing demand for AI-focused memory solutions, which has tightened supplies of conventional smartphone RAM.
Industry sources indicate that major memory suppliers Samsung and SK Hynix have renegotiated their supply agreements with Apple. Under the revised terms, Apple is expected to pay significantly more for LPDDR RAM used in iPhone models. Samsung is said to have raised its prices by around 80 percent compared to the previous quarter, while SK Hynix has reportedly increased prices by nearly 100 percent.
The surge in prices is linked to the rapid adoption of artificial intelligence. Memory manufacturers are prioritising High Bandwidth Memory (HBM) for AI data centres, where companies store training data and power generative models. This shift has caused shortages of DRAM and NAND memory for other sectors, including smartphones, putting pressure on device makers to manage rising costs.
Reports suggest the situation could worsen in the second half of 2026, with memory prices expected to climb further. This may impact the manufacturing costs of upcoming Apple devices, including the rumoured iPhone 18 Pro series and a foldable iPhone.
Adding to the concern, a tech blogger recently revealed that the price of 12GB LPDDR5x RAM used in the iPhone 17 Pro, iPhone 17 Pro Max, and iPhone Air has increased by more than 230 percent. Apple earlier sourced these RAM units from Samsung at prices between $25 (about Rs. 2,200) and $29 (about Rs. 2,600). The same components are now said to cost around $70 (roughly Rs. 6,300) per unit.
The report also noted that Apple has been exploring options to expand its supplier base in response to the sharp rise in costs. However, finding alternative RAM suppliers has proved challenging, forcing the company to continue negotiations with existing partners. According to the blogger, Apple is currently in a relatively stable position as it had secured large quantities of memory components earlier.
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