Apple’s next-generation iPhones are likely to come with higher prices as memory costs rise, first reported by The Verge. The pressure gives PC and smartphone makers a choice among raising prices, making fewer devices, putting less memory in them, or focusing on more expensive models with enough margin to absorb the added cost.
That pressure reflects a shortage that predates generative AI. Pandemic-era purchases pulled demand forward, leaving manufacturers with excess inventory when consumer spending weakened, while shrinking gains from fitting more chips onto each wafer delayed expansion before generative AI created a larger, more memory-intensive demand wave.
AI data centers use HBM, a specialized form of DRAM that is harder to produce and more lucrative. Micron estimates that a given amount requires roughly three times as many wafers as conventional DRAM, while phone and PC makers need more conventional DRAM for smaller AI models running on devices.
That leaves conventional phone memory competing for capacity with a more lucrative AI-oriented product. Samsung, SK Hynix, and Micron account for about 90 percent of the market, and AI customers are willing to make long-term commitments.
Counterpoint estimates smartphone DRAM prices rose roughly 56 percent in the first quarter of 2026 and around 83 percent in the second. For 16GB of smartphone DRAM, the estimated cost rose from roughly $42 in the second quarter of 2025 to about $181 a year later.
Those figures are not necessarily Apple’s prices. Apple’s scale gives it supplier leverage and its customers have historically proved willing to pay premium prices, but the company has already raised prices across Macs and iPads and said higher memory costs directly reduced its gross margin.
The expected fall lineup is concentrated on the iPhone 18 Pro, Pro Max, and first foldable iPhone. A Wall Street Journal calculation based on TechInsights estimates says the iPhone 18 Pro could start at $1,299, $200 more than the iPhone 17 Pro.
New capacity will not provide immediate relief. Micron’s Idaho fab is expected to begin wafer output in mid-2027, while meaningful output from its New York complex is not expected until 2030.
Counterpoint does not expect capacity to catch up with demand until late 2027 or early 2028 in the best-case scenario; IDC expects the shortage to last through 2027 and well into early 2028 before meaningful relief.
