We are currently facing a memory shortage. This is due to the AI boom, leading memory manufacturers to focus more on producing memory for data centers rather than consumer devices. Recently, it was revealed that Apple had managed to secure RAM from Samsung for its iPhone 17 and iPhone 18 series. However, it seems that Apple might have paid a premium for it.
Apple pays a premium for Samsung RAM
According to a report out of Korea, it was reported that Apple has paid a hefty premium to secure RAM from Samsung. The report suggests that Apple accepted a 100% premium for LPDDR5X RAM. That’s basically double what the Cupertino company was paying before. But here’s the funny thing: Samsung was willing to go lower.
The report claims that Samsung was planning to lower the figure to 60%. This is common in any negotiations, where you start high and slowly bargain the price down. This is true for all situations, whether you’re trying to secure RAM modules or shopping at a flea market.
For a bit of context, at the start of 2025, Apple was paying around $25-$29 per RAM module. However, the memory shortage saw prices rise to as much as $70 by the end of 2025. Now, if this report is accurate, Apple could be paying Samsung as much as $140. We will never know the actual numbers because these types of contracts are confidential. But regardless, Apple’s willingness to accept a 100% premium suggests that they are desperate.
What does this mean for iPhone customers?
Well, Apple’s CEO has already hinted that the memory shortage could result in price hikes. But there is some good news. Reports from earlier this month suggest that Apple will not be raising the price of its iPhone 18 Pro series. Instead, the company will absorb the costs. Apple definitely makes a profit from its iPhones, but if they absorb the costs, their margins will be smaller.
However, the company isn’t playing the short-term game. Instead, the report claims that Apple will absorb the costs in exchange for market share. While other OEMs might increase their prices, Apple will maintain theirs. This could make the iPhone more appealing to those customers who might switch platforms.
But this isn’t just about the sale of the hardware, but locking in customers to its ecosystem. Apple makes a tidy sum of money from services. This includes subscription to the Apple One plan and the commissions it gets from the sale of apps and in-app purchases. This means that even though Apple might make less profit from the iPhone 18 Pro and Pro Max, they could stand to earn more in the long run.
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