iPhone memory cost is fast becoming one of the biggest pressure points in Apple’s supply chain.
iPhone memory cost set to surge
Apple is heading into one of its toughest component cycles as a global shortage of memory chips threatens to push up the cost of future iPhones.
Analysts cited by the Financial Times and JPMorgan say memory could account for as much as 45 percent of an iPhone’s component bill by 2027, up from roughly 10–15 percent historically.
The squeeze is being driven by AI data centres, which are soaking up vast amounts of DRAM and NAND flash and leaving fewer chips for smartphone makers.
Market researchers have lifted their 2026 semiconductor revenue forecasts, pointing to “unprecedented” growth in memory even as broader smartphone shipments soften.
How Apple may respond to rising iPhone memory cost
While some smartphone brands are expected to pass the full cost on to buyers, Apple is reportedly trying to absorb at least part of the increase.
The company has been aggressively locking in memory supply at higher prices, a sign it wants to protect iPhone volumes and keep headline prices from spiking overnight.
At the same time, Apple is trying to reduce its dependence on China by expanding manufacturing in India and the US, yet its access to advanced memory still relies on a small group of global suppliers.
Global smartphone system‑on‑chip shipments fell around 8 percent year on year in the first quarter of 2026, with analysts directly linking the drop to constrained memory supply and higher component prices.
Leadership shift as iPhone memory cost becomes critical
All of this lands just as John Ternus prepares to take over as Apple’s new chief executive later this year, succeeding Tim Cook.
Ternus, a longtime hardware chief, will inherit a delicate balancing act: maintaining Apple’s margins, securing scarce memory, and steering production through geopolitical tensions and trade risks.
If memory really does swallow nearly half the value of an iPhone, it will reshape how Apple designs, prices, and positions its flagship product in a world increasingly defined by AI.
For consumers, the hope is that Apple’s scale and strategy keep any shock to retail prices in check, even as the iPhone memory cost story becomes a key test of the company’s next era under new leadership.
