The AI boom could cost Apple up to $57 more per iPhone

The AI boom could cost Apple up to $57 more per iPhone – for memory chips alone.

"The rate of increase in the price of memory is unprecedented," says Mike Howard, an analyst at TechInsights, speaking to the Wall Street Journal. By the end of this year, the price of DRAM will quadruple from 2023 levels, and NAND will more than triple.

For Apple, the numbers are stark: The base-model iPhone 18 due this fall could cost $57 more in memory alone compared with the current iPhone 17 – a significant hit to profit margins on a device that retails for $799. This aligns with recent rumors that Apple may delay the base model's release to later this year.

The cause: AI companies like OpenAI, Google, and Meta are now outbidding Apple for scarce components. Nvidia has even overtaken Apple as TSMC's largest customer, a position Apple held for years.