The memory requirements of experiencing the entire Siri AI features suite will eventually force Apple to introduce a minimum of 12GB LPDDR5X RAM for its iPhone 18 lineup, but more importantly, is how increased demand for these devices will contribute to the existing memory crisis while making a handful of suppliers wealthy in the process.
Latest estimates state that iPhones will rise to 250 million shipments in 2027, with Apple keeping a tight leash on the DRAM supply and making the situation tough for other competitors
Despite Apple slowly losing its negotiating prowess to hyperscalers for DRAM orders, it still commands the lion’s share of annual smartphone shipments, meaning that memory makers like Samsung, SK hynix, and Micron will continue to give Apple sufficient priority. The problem is that according to KB Securities’ estimates, the Cupertino firm will ship around a whopping 250 million iPhones in 2027, and with its ample cash supply, it should have little issue paying the DRAM premium.
The concern is that as Siri AI continues to offer more features, the memory requirements will slowly creep up, forcing an even bigger supply choke than previously anticipated. Now, as a company, Apple is under an obligation to ship as many units in a calendar year, but the introduction of Siri AI suggests that the company cannot keep the base iPhone 18’s specifications stunted, meaning that the latter will also ship with 12GB of DRAM.
While this upgrade can open a ton of doors for users who wish to engage in activities other than on-device AI, it will make the situation difficult for the entire industry and consumers. Then again, won’t purchasing an excessive supply of memory force Apple to introduce a price hike for its iPhone 18 lineup? To an extent, yes, and with the company’s DRAM stockpile nearly exhausted, Apple would be left with few options, but it has an ace up its sleeve.
According to TF International Securities analyst Ming-Chi Kuo, its “Services” division will provide plenty of financial cushion to shield Apple from these price hikes, allowing it to take advantage of the market chaos and become the number one player in this segment. Unlike Apple, its competitors don’t have other billion-dollar businesses to offset the premiums that need to be paid during the DRAM crisis, and with Siri AI expected to be used as a marketing tool in droves, consumers would have a small reason to upgrade.
News Source: DigiTimes
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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