John Ternus faces iPhone pricing and manufacturing decisions amid rising memory costs
Updated
Updated · 9to5Mac · Apr 29
John Ternus faces iPhone pricing and manufacturing decisions amid rising memory costs
8 articles · Updated · 9to5Mac · Apr 29
Apple’s RAM costs are set to rise by over 400% by next year, potentially raising memory’s share of iPhone component costs from 10% to 45%.
Ternus must decide whether to absorb these costs, risking lower margins, or increase iPhone prices, risking reduced sales, while also navigating manufacturing shifts across China, India, and the US.
These pressures follow reports that AI server demand is outbidding consumer electronics for memory, forcing Apple to reconsider its supply chain and product launch strategies, with significant long-term impacts on its global operations.
With memory fully booked until 2027, will Apple be forced to delay more than just the iPhone?
Could Apple's Mac memory technology be the secret weapon to solve its iPhone cost crisis?
Will Apple sacrifice its legendary profit margins to defend its market share in China and India?
As rivals secure memory with billions upfront, is Apple’s traditional procurement model now obsolete?
Can new CEO John Ternus prevent the AI boom from making the next iPhone unaffordable?