Memory Crisis Hits iPhone 17: RAM Costs Double, Are Price Hikes Coming?
The ongoing DRAM crisis in the semiconductor industry is beginning to show its full impact. Analysts predict that supply constraints will persist until at least the last quarter of 2027, and major manufacturers are already feeling the pressure. According to a recent report, Apple’s production costs for its upcoming flagship models have surged dramatically, with memory components emerging as one of the most expensive factors. In fact, the RAM used in the iPhone 17 Pro and iPhone 17 Pro Max has more than doubled in cost.
The report reveals that Apple is now paying roughly 230 percent more for the 12 GB LPDDR5X RAM used in its high-end iPhone 17 models. Earlier this year, these memory modules were priced between $25 and $29 per unit. Recent figures, however, show that the cost has climbed to around $70. This sharp increase is no longer a marginal expense but a significant contributor to overall manufacturing costs.
Industry insiders note that the current DRAM supply shortage is unlikely to ease in the near term. As a result, the cost pressure is expected to extend beyond the iPhone 17 lineup and affect the iPhone 18 series as well. Compounding the issue is the fact that Apple’s long-term supply agreements with Samsung and SK hynix are set to expire in January 2026, forcing the company to reconsider its sourcing strategies and explore alternative solutions.
At present, Samsung remains Apple’s strongest partner in RAM supply, accounting for an estimated 60 to 70 percent of memory shipments for iPhones. With mass production of the iPhone 18 series expected to begin in February, rising memory prices are likely to continue squeezing Apple’s profit margins in the months ahead.
In response, Apple is increasingly turning to in-house hardware development to offset rising component costs. Starting in 2026, the company is expected to deploy its A20 and A20 Pro chips, along with the internally developed C2 5G modem, across the iPhone 18 lineup and upcoming foldable iPhone models. This move aims to reduce reliance on third-party suppliers such as Qualcomm and lower long-term licensing and component expenses.
The key question for consumers remains unanswered: will these higher RAM costs translate into more expensive iPhones? Apple has previously absorbed some cost increases, while at other times adjusting retail prices. Whether the iPhone 17 series will see a noticeable price hike will ultimately depend on how effectively Apple can balance rising hardware costs against its broader supply chain and in-house technology strategy.
