Apple has warned investors that rising memory costs could soon pressure its profits, even though the company avoided major impact in its most recent quarter. During its latest earnings call, CEO Tim Cook said RAM and flash prices barely affected first-quarter margins. However, he expects the pressure to grow through mid-2026.
Cook explained that higher memory pricing will likely show up more clearly in the second quarter. After that, the third fiscal quarter could feel an even stronger impact. Although Apple has not confirmed any price increases, analysts now watch closely to see how the company responds.
Supplier Shifts Add New Challenges
The global memory market has tightened, and Apple faces fewer supplier options than before. Two former partners have shifted focus toward high-bandwidth memory used in artificial intelligence systems. As a result, Apple now relies more heavily on Samsung to supply LPDDR memory for iPhones.
At the same time, demand for memory has surged across the technology industry. Smartphone makers, AI developers, and cloud providers all compete for the same components. Consequently, supply struggles to keep pace, and prices continue to rise.
One clear example highlights the speed of change. In early 2025, Apple paid about $30 for a 12GB memory module. By December 2025, the cost had climbed to roughly $70. This sharp jump illustrates how quickly market pressure can reshape production costs.
Apple Searches for Cost Solutions
Cook stressed that Apple has several strategies to manage rising expenses. He declined to share specific tactics but said the company will pull “different levers” where possible. Apple historically uses long-term contracts and large purchase volumes to secure better pricing. However, many of those agreements have expired, forcing the company into more frequent negotiations.
Consistency also matters. Apple engineers design processors around strict voltage requirements, and not all memory suppliers meet those standards. Therefore, Apple cannot simply switch vendors without risking performance issues.
Outlook Remains Uncertain
Despite the pressure, Apple still benefits from scale and strong cash reserves. Industry observers believe the company can absorb some costs without immediately raising consumer prices. Nevertheless, continued shortages could reshape pricing strategies later in the year.
For now, Apple signals caution rather than alarm. Yet the memory market remains volatile, and the next few quarters may test how flexible the tech giant can be.
