The next generation of iPhones is set to cost more, thanks to soaring RAM prices. This isn’t just an Apple issue; it’s a tech-wide problem. The shortage is reversing decades of declining memory costs, making our gadgets more expensive.
The root of the crisis? AI. Specialised processors in data centres have a voracious appetite for high-bandwidth memory, which is more expensive and requires more manufacturing capacity. Chipmakers are prioritising AI demands over consumer devices, leading to a global memory crunch.
The memory industry is dominated by just three companies, which means limited capacity is being divided between AI infrastructure and consumer devices. Samsung, SK Hynix and Micron are the big players, with Samsung leading the pack. These companies are now securing multiyear commitments from tech giants like Nvidia, AMD, Meta and Microsoft, which ensures steady demand.
The shift in demand is structural. Conventional DRAM is also seeing increased demand as phone and PC manufacturers want to run more advanced AI models on their devices. Future devices may need significantly more memory than before to support these capabilities. It’s a complex, profitable reshuffle that leaves consumers paying the price.
