Apple has agreed to steep price increases of up to 40 percent for DRAM and NAND memory chips supplied by Samsung, starting in the first quarter of 2027.
The Rising Costs of DRAM and NAND Silicon
Component expenses are climbing rapidly across the hardware supply chain. According to reports cited by Jiemian News, Apple will pay roughly 2 US dollars per gigabit for DRAM memory and about 0.33 US dollars per gigabit for NAND storage beginning in early 2027. These figures mark a sharp escalation from third-quarter 2026 baseline prices, where DRAM sat at approximately 1.50 dollars and NAND at 0.26 dollars per gigabit. This structural shift represents a 30 to 40 percent hike in raw component costs.
The underlying driver behind this pricing pressure is a global shortage of semiconductor memory. Production capacity at major foundries—specifically Samsung, SK Hynix, and Micron—is heavily booked out for 2027. This manufacturing bottleneck is largely fueled by the aggressive expansion of data centers built to support artificial intelligence workloads, which gobble up massive quantities of both DRAM and NAND flash memory.
A Pattern of Hardware Price Escalations
Apple has already proven willing to pass manufacturing expenses down to consumers. Earlier in the current production cycle, the tech giant raised prices across its Mac and iPads lines in June, followed by upward price adjustments for the iPhone lineup in September. In Germany, the iPhone 18 Pro equipped with 256GB of storage now retails for 1449 euros—marking a 150-euro jump over its predecessor.
Despite these steep figures, hardware reviews indicate that recent devices still perform strongly. Testing of the iPhone 18 Pro Max highlights solid generational upgrades in processor speed, battery longevity, and camera output, even as retail costs climb higher for everyday buyers.
What the 2027 Supply Deal Means for Entry-Level iPhones
It remains unconfirmed whether Apple will absorb a portion of these new component expenses within its operating margins or push the entirety of the price hike onto retail customers. However, industry analysts note that the cost burden will weigh heavily on budget-conscious product lines.
Consumers looking to escape Apple’s ecosystem pricing via Android will find little relief. Because of Cupertino’s immense purchasing power and supply chain leverage, rival smartphone manufacturers face identical or even higher component procurement costs amid the ongoing memory shortage.
