And the pain isn’t over just yet. Earlier this week, the Twitter/X leaker Semiconductor Insider (via AppleInsider) discussed a new quote Samsung had given Apple to supply memory in the first quarter of 2027, and the figures make for ominous reading. The prices–DRAM at around $2 per Gb, and NAND at $0.33 per Gb–are 30-40 percent up on current rates. That’s a big hike in manufacturing costs, and Apple will be reluctant to take the hit and reduce its profit margins. In other words, we can expect further iPhone price rises in 2027.
At that stage, it wasn’t clear if Apple would sign the deal, but DigiTimes reported Wednesday that Apple had indeed accepted the higher costs. DigiTimes has a weak track record for Apple rumors, but it’s much more reliable for industry deals.
We don’t know if Apple will increase the starting prices of the new iPhones as a result of the supplier deal, but the situation will certainly create complications in the spring. This month’s iPhone event was all about the unobtainable luxuries, but we’re due to get more budget-focused handsets in March or April: the iPhone 18 and the iPhone 18e (plus the iPhone Air 2, potentially, but that won’t be cheap). It’ll be tough to market the iPhone 18e as a budget option if it gets another price hike and starts at $799.
If all this makes you think about jumping ship and getting an Android device instead, it’s worth bearing in mind that other manufacturers face the same issues and may suffer more. As Semiconductor Insider points out, Apple’s deal “is the price floor for everyone else.” The Cupertino company has immense leverage and almost always gets the best supplier deals. Whatever it’s paying, Android companies will have to pay the same or more.
