The price hike from Apple was an inevitable event, but the company is now making efforts to ensure that its DRAM supply isn’t disrupted by AI chips gobbling up the entire supply, which would explain the firm’s lobbying attempts to source memory chips from a Chinese blacklisted memory manufacturer, CXMT. However, an analyst believes that forming a partnership with a new company won’t address the supply or pricing fixes, but it’ll tackle one problem that Apple fears more than the aforementioned issues; managing DRAM shortage risk.
With the DRAM shortage now set in stone, Apple’s plans have shifted towards securing a stable supply, with its actual volume estimated to be 10-20 percent lower
From paying $39 a couple of years ago to forking over $145 for a 12GB LPDDR5X RAM chip, it’s clear that Apple isn’t looking for a way to escape these price hikes, but to reduce its risk, hence its involvement in bringing CXMT into the fold. According to TF International Securities analyst Ming-Chi Kuo, Apple’s “pull-in” volume of A20 and A20 Pro chips will be between 10-20 percent lower from H2 2026 to Q1 2027 due to the shortage.
For those who believe that Apple’s pricing and supply woes will be resolved by bringing CXMT on board, Kuo has a different impression. Instead, as mentioned above, the California-based titan wants to eliminate the risk of DRAM shortage, which can adversely affect iPhone 18 shipments for the year. This supply choke is exactly why Apple is reported to move to TSMC’s 1.4nm process after just two generations of sticking with the 2nm node.
| Components | Price before shortage | Price after shortage | Price difference in percentage |
|---|---|---|---|
| RAM (12GB LPDDR5X) | $39 | $145 | 272% |
| Storage (256GB) | $13 | $51 | 292% |
Kuo also implies that Apple’s incoming CEO, John Ternus, may not be properly equipped or experienced to handle the tensions between the U.S. and China, and believes that Tim Cook is the right man for the job. However, this move must be executed before Cook steps down, or Apple can potentially lose another supplier. As for Samsung and SK hynix, these two will maintain the lion’s share of the DRAM supply, and with the bulk of earnings coming from AI chip clients, their trajectory won’t change anytime soon.
News Source: Ming-Chi Kuo
About the author: Omar Sohail is a reporter and analyst for Wccftech's mobile section, specializing in the technology and business of the mobile industry. His expertise lies in the intricate hardware supply chain, covering developments in semiconductor manufacturing, chip lithography, and camera sensor technology.
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