Apple appears to be preparing a clever strategy to shield customers from price increases on the upcoming iPhone 18 series, even as global component costs continue to climb.
According to reports, the Cupertino giant is leveraging its strong financial position to absorb rising memory expenses rather than passing them on to buyers. This move comes at a time when demand for mobile DRAM is surging due to the AI boom, putting pressure on the entire supply chain.
A report by Wccftech, citing sources in South Korea, quoted by TOI, suggests that Apple is aggressively purchasing a large share of available mobile DRAM at higher prices. The goal seems to be securing sufficient supply while limiting availability for rival manufacturers.
Kuo highlighted Apple’s leverage in the market, saying that while other non-AI brands struggle to secure chips even if they’re willing to pay more, Apple can lock in deals others cannot. He also mentioned that although this will impact gross margins in the short term, Apple’s long-term playbook is to use the market chaos to gain share and recover through services revenue later.
Kuo further noted that Apple’s current plan for the iPhone 18 models is to avoid raising prices as much as possible, at least keeping the starting price flat for better marketing appeal.
Apple CEO Tim Cook has previously spoken about challenges with memory prices and limited TSMC capacity at advanced nodes. However, recent developments suggest Apple is using its deep pockets to buy components aggressively and keep internal costs under control.
This approach could help Apple maintain price stability for the iPhone 18 series while simultaneously tightening supply for competitors in the broader smartphone market.
(With TOI inputs)
According to reports, the Cupertino giant is leveraging its strong financial position to absorb rising memory expenses rather than passing them on to buyers. This move comes at a time when demand for mobile DRAM is surging due to the AI boom, putting pressure on the entire supply chain.
A report by Wccftech, citing sources in South Korea, quoted by TOI, suggests that Apple is aggressively purchasing a large share of available mobile DRAM at higher prices. The goal seems to be securing sufficient supply while limiting availability for rival manufacturers.
What analysts are saying
TF Securities analyst Ming-Chi Kuo shared his thoughts on X, quotd by TOI, noting that Apple is likely to absorb the higher memory costs instead of raising device prices. He pointed out that iPhone memory pricing is now negotiated quarterly, with another hike expected in Q2 2026.Kuo highlighted Apple’s leverage in the market, saying that while other non-AI brands struggle to secure chips even if they’re willing to pay more, Apple can lock in deals others cannot. He also mentioned that although this will impact gross margins in the short term, Apple’s long-term playbook is to use the market chaos to gain share and recover through services revenue later.
Kuo further noted that Apple’s current plan for the iPhone 18 models is to avoid raising prices as much as possible, at least keeping the starting price flat for better marketing appeal.
Broader industry impact
The ripple effects of rising memory prices are already visible across the industry. Companies like MediaTek and Qualcomm have reportedly reduced 4nm mobile chip shipments by 15-20 million units, as per TOI. Samsung has also increased prices for some high-end Galaxy models, though not directly tied to memory issues.Apple CEO Tim Cook has previously spoken about challenges with memory prices and limited TSMC capacity at advanced nodes. However, recent developments suggest Apple is using its deep pockets to buy components aggressively and keep internal costs under control.
This approach could help Apple maintain price stability for the iPhone 18 series while simultaneously tightening supply for competitors in the broader smartphone market.
(With TOI inputs)
