The memory crisis is about to hit iPhones too: is a price increase on the way?

Apple might soon have to deal with the memory crisis. In fact, there may be a price increase for iPhones on the horizon due to the rising costs of memory modules. This situation is clarified by a new report from the Financial Times, which cites an analysis by JP Morgan. The Cupertino company will soon face a very delicate decision.

An unprecedented increase

Memory used to account for about 10% of the overall cost of components for an iPhone. Today, however, this percentage is significantly higher and is expected to reach 45% of the total component cost by 2027. Considering that the costs of other components cannot be reduced, Apple will soon face a dilemma: whether to raise prices or give up a significant portion of the profit margin related to the sale of its smartphones.

Choosing to increase prices could ensure substantial market share growth, while the latter could protect profits from a drastic reduction in the near future. For now, there is no information regarding what the company's choices might be.

The memory crisis could also be the reason behind the company's decision to postpone the launch of the iPhone 18 to the early months of 2027, in order to use the available memory only for the higher-end models, which can guarantee greater revenues. It's worth noting that Apple may have found a way to lower the production costs of the iPhone 18, with some compromises on quality.