Apple already raised prices on its iPhones this year. Now a new deal suggests the company may have to raise them again in 2027.
According to a lengthy social post by Semiconductor Insider, Apple may have agreed to pay $2.00 per Gb of dynamic random access memory, or DRAM. That is the component that stores data temporarily while devices run. The move comes as demand for memory from AI data centers pushes up prices across the industry.
The agreement follows a pattern set earlier this year. Apple increased prices on many existing products in the summer, then followed up with higher prices for new iPhone models in September. The company has shown it is willing to raise prices when necessary, and the memory deal suggests more increases are possible in 2027 and beyond.
The Deal Behind the Price
DRAM is the kind of memory that most modern electronics need to function properly. Demand from AI data centers is one of the main drivers of the “RAMageddon” price hikes we have all experienced in the past year or so.
Apple had previously paid $1.50 per Gb of DRAM. The jump to $2.00 per Gb represents a significant increase. The $2.00 per Gb figure is notable because it shows the direction of travel. Prices were already high, and they are moving higher.
The deal could push prices up across Apple’s product line. iPhones are likely to feel the strain. The recent price hikes have been driven by demand from AI data centers, and the Duo’s launch price sits against that backdrop.
What the Duo Might Cost
The iPhone Duo launches at $1,999 later this year. With memory prices on the rise, that device could conceivably cost even more by this time next year.
That is not a guarantee. Apple might find creative ways to absorb the higher costs. But the possibility puts pressure on consumers to buy now, before already-expensive devices get even pricier. Something is going to have to give at some point.
Why Prices Keep Rising
The memory shortage has been building for months. AI data centers are consuming vast amounts of DRAM, driving up prices across the industry. The situation is simple to state and harder to resolve. Apple pays more for memory, so iPhones cost more.
The $2.00 per Gb figure is notable because it shows the direction of travel. Prices were already high, and they are moving higher.
What Comes Next
Consumers who have been waiting for a better price on an iPhone may want to reconsider. The window of opportunity is closing. Apple has already done so twice this year, and the memory deal suggests more increases are possible in 2027 and beyond.
The iPhone Duo, launching at $1,999 later this year, is the immediate concern. By this time next year, that price could look like a bargain.
Key Facts
- Apple may have agreed to pay $2.00 per Gb of DRAM
- Previous price: $1.50 per Gb of DRAM
- iPhone Duo launches at $1,999 later this year
- Deal reported via Semiconductor Insider, Digitimes, and Apple Insider
- RAMageddon: the term for recent memory price hikes
The situation is simple to state and harder to resolve. Apple pays more for memory, so iPhones cost more. The recent price hikes have been driven by demand from AI data centers, and the Duo’s launch price sits against that backdrop.
The question now is whether Apple can find a way to keep prices down, or whether consumers will simply have to accept paying more for the same hardware. The memory deal suggests the latter is more likely.
Source material: “Memory pricing suggests iPhones could get even more expensive in 2027,” Mashable.
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