230 percent higher DRAM costs affect iPhone 17 production

"Apple is facing sharply rising costs for memory components in its premium smartphones. According to recent rumors, the company is currently paying a premium of approximately 230 percent for each 12GB LPDDR5X RAM chip used in the more expensive iPhone 17 models. This is reported by Wccftech. The cost increase is a direct result of a continuing global shortage of DRAM, a problem that is expected to continue for several more years."

"At the beginning of 2025, the price of a 12GB LPDDR5X RAM chip was still between $25 and $29. That amount has now risen to around $70 per chip. For Apple, this puts considerable pressure on the margins of its high-end smartphones, especially since the iPhone 17 Pro and Pro Max have already implemented a price increase this year. The combination of higher component costs and limited room for further price increases is forcing the company to consider alternative strategies."

"Apple stockpiled DRAM The situation is further complicated by the fact that Apple's long-term supply agreements with memory giants Samsung and SK hynix are reportedly set to expire in early 2026. Although Apple traditionally benefits from a very strong and flexible supply chain, the company appears not to be completely immune to structural increases in DRAM prices. However, Apple is said to have purchased a significant amount of memory prior to the recent price increases, which offers some protection in the short term."

Apple is paying roughly a 230 percent premium for 12GB LPDDR5X RAM used in higher-end iPhone 17 models as DRAM prices surge. A 12GB chip price rose from about $25–$29 at the start of 2025 to around $70, driven by a continuing global DRAM shortage expected to last years. The increase strains margins for iPhone 17 Pro and Pro Max, which already saw price hikes, and limits room for further retail price rises. Apple purchased significant memory ahead of the spike, but long-term supply deals with Samsung and SK hynix expire in early 2026, and reliance on Samsung has grown to around 60–70 percent, putting future models such as the iPhone 18—planned to use six-channel LPDDR5X for AI—at risk of higher costs or alternative sourcing strategies.

Read at Techzine Global