Apple plans to shield iPhone 18 pricing from memory shortages, leaning on services as AI-driven demand tightens component supplies

Apple is reportedly gearing to keep the iPhone 18’s starting price steady despite a global memory shortage, a move tied to guidance from supply chain analyst Ming-Chi Kuo. The idea is for Apple to absorb higher RAM costs rather than pass them on to consumers, at least for the iPhone 18’s launch.

Key points from Kuo’s assessment:

• RAM price increases may be absorbed by Apple, helping to avoid immediate price hikes for the iPhone 18.
• The company is now negotiating memory costs with suppliers every quarter, rather than twice a year, signaling a more agile approach to volatility. A further price uptick is anticipated in the next round of talks.
• Apple aims to offset rising costs through its services ecosystem, including Apple Music, iCloud, Apple TV, and related offerings.

Beyond RAM, the report notes broader supply pressures:

• It’s possible that other non-RAM components are in short supply as suppliers race to support AI-related demand.
• Glass cloth, a material used in printed circuit boards by Apple, Nvidia, AMD, Qualcomm, and others, is experiencing bottlenecks because AI firms are chasing the same resource.

Overall, the narrative suggests Apple is weighing price stability on devices against pressures from a memory crunch and broader supply constraints driven by AI growth, while leaning on services to cushion margins.

Emma Roth

Note: This rewrite preserves the article’s core claims while presenting them in a distinct structure and wording.