By 2027, memory costs could represent up to 45% of an iPhone’s component expenses, a significant increase from the current 10%. Apple, traditionally a leading buyer of memory for its 250 million iPhones annually, now faces competition for supply due to the AI industry’s expansion. Companies like Nvidia are outbidding consumer electronics firms for memory from major suppliers, while cloud companies secure capacity with large upfront payments. This shift is influencing Apple’s product strategies, with the iPhone 18 series expected to launch in a staggered manner, releasing the lower-priced model in spring 2027 and the Pro models in September. As John Ternus takes over as CEO from Tim Cook, who becomes Apple’s first executive chair, he faces the decision of whether to absorb rising memory costs or pass them on to consumers. Analysts suggest Apple’s choice may hinge on maintaining consumer-friendly prices or accepting reduced margins, particularly in competitive markets like India and China.
Will iPhone Memory Costs Quadruple by 2027?
