Thanks to Apple’s long-term supply chain contracts, your iPhone and MacBook have not seen any price increase at a time when all its competitors continue to raise theirs. However, that might be about to end.
According to a Financial Times report, memory costs for iPhones could jump from around 10% of the total component cost today to as much as 45% by next year, a rise of over 400%.
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Naturally, this will result in price hikes across Apple’s product lineup, especially the iPhone.
So why is this happening?
As it seems to be the answer for everything from past year, it’s AI. Companies building out data centers for frontier AI models are outbidding consumer electronics manufacturers for limited memory supply.
Nvidia and other AI infrastructure companies are reportedly locking in capacity with massive upfront payments worth billions of dollars. That has left Apple, a company
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