- 0-20%: Unlikely - Lacks credible sources
- 21-40%: Questionable - Some concerns remain
- 41-60%: Plausible - Reasonable evidence
- 61-80%: Probable - Strong evidence
- 81-100%: Highly Likely - Multiple reliable sources
65%
Probable
A Samsung co-CEO recently stated that no entity can escape from the DRAM shortage, and given that Apple’s Long-Term Agreements (LTA) for these chips were rumored to expire this month, the technology giant has resorted to other tactics to secure adequate supply for a multitude of products. According to the latest report, the Cupertino firm’s executives have booked extended hotel stays in an effort to come to terms with memory manufacturers Samsung and SK hynix and secure a memory supply that will last between two and three years. For a company that ships iPhones in the millions, reaching an agreement is of paramount importance.
Other PC and smartphone makers like Google and Dell have also been visiting Samsung’s and SK hynix’s headquarters to secure sufficient DRAM supply
A 12GB LPDDR5X RAM chip is now rumored to cost Apple $70 per unit, resulting in a mammoth 230 percent price increase compared to what the company was paying for the component at the start of 2025. Despite the California-based titan tapping Samsung as its largest DRAM supplier for the iPhone 17 and iPhone 18 series, Korea Economic Daily reports that Apple’s executives have had to book long-term stays in hotels located in Hwaseong, Gyeonggi Province.
The ongoing memory crisis has also forced companies like Google and Dell executives to make the same trip, causing the hotel business in South Korea to spike. Unfortunately, memory suppliers are now cherry-picking customers, with Apple, Dell, and others becoming beneficiaries of the supply. However, this preferential treatment doesn’t exempt them from having to fork over a premium because DRAM contract prices are projected to rise by 50 percent in this quarter.
Executives from Microsoft and Google have reportedly been threatened with losing their jobs if they fail to secure DRAM supply from Samsung and SK hynix, but it is unclear if Apple employees are being pressured with the same ultimatum. What we do know is that the iPhone maker will likely have to absorb hefty margins if it wishes to continue selling its iPhone 17 and iPhone 18 lineups at the same price.
According to Counterpoint Research, the DRAM shortage is estimated to increase a smartphone’s Bill of Materials (BoM) by 25 percent, resulting in a decline in shipments. Fortunately, Apple is in a much more stable position than other companies thanks to a solid grip on its supply chain, not to mention that its concentrated efforts on in-house chipsets help lower the components bill substantially. This leaves the company with more room for generating margins, meaning that it can probably absorb the DRAM price bumps more comfortably.
News Source: Korea Economic Daily
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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