Key Takeaways
1. Apple faces supply agreement issues with DRAM suppliers Samsung and SK Hynix, affecting production capabilities.
2. The company has secured a Long-Term Agreement for DRAM supply lasting until the first half of 2026 but couldn’t finalize its usual annual deal.
3. The iPhone 18 series is set to launch in September 2023, with potential price increases due to the DRAM shortage.
4. Apple plans to stagger the release of the iPhone 18 models, with some expected releases pushed to 2027.
5. Significant DRAM price increases of up to 70% and NAND flash prices up to 100% are predicted, impacting Apple’s product pricing.
It was just a matter of time before the current DRAM shortage would start affecting Apple and their production capabilities. According to a recent report from a Korean news source, the tech giant from Cupertino has struggled to finalize its usual agreements with DRAM suppliers Samsung and SK Hynix, which might lead to increased prices for the upcoming iPhone 18 series and other Apple gadgets.
Supply Agreement Issues
The report from ZDNet Korea reveals that Apple has only managed to secure a Long-Term Agreement (LTA) for DRAM supply that will last until the first half of 2026. The company relies on SK Hynix and Samsung for its DRAM needs, and due to the ongoing memory crisis, Apple couldn’t get its normal annual deal. As a result, the anticipated iPhone 18 series, set to launch in September this year, may face a price increase.
Upcoming Launches
It seems that Apple is planning to stagger the release of the iPhone 18 series, introducing the iPhone 18 Pro, Pro Max, and Fold this year. However, the base iPhone 18 and iPhone 18e are expected to be released in 2027, along with the iPhone Air 2. There’s a chance that some of these models might not have a higher price at launch. Likewise, Apple may manage to roll out the iPhone 17e, M5 Pro, and M5 Max MacBook Pro models without the added DRAM cost.
Price Increase Predictions
A previous leak from a well-known insider, which referenced data from research company Omdia, indicated potential price hikes of 70% for DRAM (LPDDR) and about 100% for NAND flash. Another source suggested that the prices for 12GB LPDDR5X RAM chips jumped from $25 to $29 to around $70 due to surging demand. Like many other manufacturers, Apple is not immune to these trends, and customers might start feeling the effects as soon as September this year.
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