iPhone models, particularly the high-end Pro series, have traditionally been seen as premium products rather than gifts. This year, the iPhone 18 Pro models are already expected to see a price increase of at least 150 euros. The rise is linked to a new pricing structure for memory components, which Samsung, a major supplier, has submitted to Apple for use starting in 2027. Memory is a crucial part of any smartphone, with two main types: DRAM, which is used to run applications, and NAND, which stores data like photos and apps. Samsung is reportedly planning to charge around 2 dollars per gigabit for DRAM and about 0.33 dollars per gigabit for NAND. These prices would be 30 to 40 percent higher than current rates. It's important to note that the figures are given in gigabits, not gigabytes. Since 1 gigabit equals 0.125 gigabytes, the cost in gigabytes would be around 16 dollars for DRAM and 2.64 dollars for NAND.
The price hike is largely driven by the growing demand for artificial intelligence, which has increased the need for memory chips in data centers. This has led to a surge in wholesale prices, with manufacturers passing these costs on to consumers. Apple has historically been cautious about raising prices, often absorbing some of the cost to protect its sales. This strategy has helped keep the price increase for the iPhone 18 Pro models to around 150 euros. However, the real challenge is expected in early 2027, when the more affordable iPhone 18 and iPhone 18e models are set to launch. Reports suggest that the iPhone 18e could start at around 799 dollars, a significant jump from the 599-dollar price tag of the previous model, the iPhone 17e.
This price increase isn't just affecting Apple. Android manufacturers are also likely to face similar cost pressures, as Apple typically enjoys the best purchasing conditions. This means Android phone makers may end up paying as much, or even more, for the same components. For example, the upcoming Oppo Find X10 Pro Max could see a price increase that brings it closer to the more premium Find X9 Ultra. Even mid-range and entry-level smartphones are not immune to these trends. Models priced around 200 euros have largely disappeared or are becoming rare, with many manufacturers either raising prices or reducing the specifications of their devices. This trend is evident in the Redmi Note 17 5G from Xiaomi, which has criticized the overall rise in smartphone costs.
The impact of these rising component prices is being felt across the industry, from top-tier models to budget devices. As demand for memory chips continues to grow, especially in the field of artificial intelligence, the ripple effects are expected to be felt by consumers in the coming years. Companies are trying to balance the need to pass on increased costs while maintaining their market appeal, but the challenge is becoming increasingly difficult as prices across the board continue to climb.
Rising Smartphone Memory Costs Expected to Impact Apple and Android Devices in 2027
AI-rewritten from original reportingHow it works
iphonememoryaipricingsmartphonesamsung



