Apple may soon face a significant increase in production costs for future iPhone models, as major memory suppliers Samsung and SK Hynix are reportedly raising prices for RAM components. According to industry sources, the two South Korean tech giants have renegotiated their supply agreements with Apple, leading to steep price hikes of up to 100 percent for LPDDR RAM used in iPhones.
AI Boom Triggers Memory Shortage
The sharp rise in memory prices is being driven by the rapid global adoption of artificial intelligence. Memory manufacturers are increasingly prioritising the production of High Bandwidth Memory (HBM), which is in high demand for AI workloads.
After developing large language model (LLM)-based AI systems, most tech companies have begun investing heavily in AI-focused data centres. These facilities require massive amounts of memory to store training datasets and provide the processing power needed for generative AI models. As a result, memory makers have shifted resources away from traditional DRAM and NAND production.
This shift has created a widespread shortage of memory components for other industries, including consumer electronics. Smartphone manufacturers, in particular, have been among the worst affected, as they struggle to maintain device pricing while component costs continue to rise.
Samsung and SK Hynix Renegotiate Apple Deals
According to a report by ZDNet Korea, Samsung and SK Hynix have successfully renegotiated their existing RAM supply agreements with Apple. Under the new terms, Apple will have to pay significantly more for LPDDR RAM sticks used in iPhone models.
Samsung has reportedly increased the prices of its memory components by around 80 percent compared to the previous quarter. Meanwhile, SK Hynix is said to be charging an even steeper premium, with RAM prices reportedly rising by 100 percent, effectively doubling quarter-over-quarter.
These increases mark a major shift in Apple’s supply chain economics, as the company has traditionally relied on its scale and long-term partnerships to secure favourable component pricing.
Higher Costs May Not End Here
The report suggests that the current price hikes may only be the beginning. Industry sources indicate that memory component prices could rise even further in the second half of 2026, driven by sustained demand from the AI sector and limited manufacturing capacity.
If this trend continues, Apple may face mounting pressure as it prepares its next generation of products. Rising RAM costs would directly impact the overall bill of materials (BOM) for iPhones and other Apple devices that rely heavily on memory components.
Impact on Future iPhones
Higher RAM prices could have implications for Apple’s upcoming smartphone lineup. The report notes that future devices such as the rumoured iPhone 18 Pro series and the long-anticipated iPhone Fold could be affected by increased memory costs.
Apple may have to make difficult decisions, including:
- Absorbing the higher costs and reducing profit margins
- Passing some of the cost increase on to consumers
- Optimising RAM configurations across models
While Apple has historically managed cost pressures through supply chain efficiency and pricing strategies, a prolonged increase in memory prices could make it harder to keep flagship iPhone prices stable.
Broader Industry Implications
Apple is not alone in facing these challenges. The ongoing DRAM and NAND shortage is impacting the broader smartphone and consumer electronics market. However, Apple’s reliance on premium components and cutting-edge performance makes it particularly sensitive to fluctuations in memory pricing.
As AI continues to reshape the semiconductor industry, traditional device makers may increasingly find themselves competing with data centre operators and AI firms for critical components.
Final Thoughts
The reported decision by Samsung and SK Hynix to raise LPDDR RAM prices by up to 100 percent could have far-reaching consequences for Apple’s future iPhone lineup. With AI driving unprecedented demand for memory components, supply constraints are unlikely to ease anytime soon.
If prices continue to rise into 2026, Apple may be forced to rethink its pricing strategies, hardware configurations, or profit expectations for upcoming devices like the iPhone 18 Pro and iPhone Fold. For consumers, this could ultimately translate into more expensive iPhones in the years ahead.
