Apple is likely to struggle to get a critical component for all its products this year. In fact, the whole electronics industry will have the same problem, and their competition will drive up prices, according to analysts.
What’s the missing product? RAM. Why is it so hard to get? AI. But the full story is more complex than those two basic facts.
The AI revolution disrupts everything
The AI revolution has surged from a niche research pursuit into a defining force reshaping the global economy. Tech giants and startups alike are racing to embed AI into everyday tools, while governments and businesses invest billions to gain strategic advantage.
Behind the scenes, large numbers of servers are required to run the AIs. Those computers need far more RAM and storage than consumer-grade computers. So companies like OpenAI, Microsoft and Google that are building huge datacenters are buying tons of RAM storage chips and enterprise-grade SSDs.
They are using up much of the capacity to produce these vital components, including the semiconductor wafers used for the RAM and storage that go into virtually every type of computer, from a desktop to a smartwatch.
AI servers strain memory production
A Mac and an AI server use different types of memory, so they aren’t directly competing. But the companies who make memory chips would rather produce products for servers because the profit margin is higher.
“Instead of expanding conventional DRAM and NAND used in smartphones, PCs and other consumer electronics, major memory makers have shifted production toward memory used in AI data centers, such as high-bandwidth (HBM) and high-capacity DDR5,” explained the analysts at IDC.
And the problem isn’t going away anytime soon. The AI boom is still taking off, resulting in a doubling in global data center capacity between now and 2030 thanks to double-digit annual growth.
At the same time, chip makers can’t easily ramp up production. New plants making RAM and other memory take up to four years to build, and even then the fresh supply is more likely to go toward servers than consumer devices because that’s a more profitable business, says S&P Global.
Memory prices go up, putting pressure on computer makers
It’s Capitalism 101 that prices rise when demand goes up. That’s happening now with memory chips, and it’s getting worse.
“DRAM prices have surged significantly as demand from AI data centers continues to outstrip supply,” notes IDC.
S&P Global concurs, saying, “Constraints in production capacity and the increasing use of conventional memory within AI servers mean prices for such chips may rise sharply.”
And PC makers are passing their extra costs on to customers.
“PC vendors are signalling broad price increases as cost pressures intensify into H2 2026,” said IDC. “Lenovo, Dell, HP, Acer and ASUS have warned clients of tougher conditions ahead, confirming 15-20% hikes.”
As for smartphones, Samsung signaled that it might be forced to raise its prices.
“There’s going to be issues around semiconductor supplies, and it’s going to affect everyone,” said Wonjin Lee, Samsung president and head of global marketing office, in an interview with Bloomberg. “Prices are going up even as we speak. Obviously, we don’t want to convey that burden to the consumers, but we’re going to be at a point where we have to actually consider repricing our products.”
But the ones most likely to increase prices are makers of low-cost Androids. As S&P Global points out, these companies’ handset profit margins are in the low single digits, so there’s no room to absorb the rising cost of RAM and storage chips.
Will Apple raise Mac and iPhone prices in 2026?
Image: ChatGPT
Apple is not a low-margin company. As any MacBook or iPhone buyer knows, these are premium products priced accordingly. That means there’s more cushion to absorb additional component costs without Cupertino being forced to raise prices.
Also, Apple often signs long-term supply contracts with suppliers. A memory maker can’t dramatically hike RAM prices if it’s contractually obligated to sell them to the iPhone maker at a pre-set cost.
And despite what some critics might claim, Apple is more likely to accept somewhat reduced profits than raise prices.
Note that the iPhone 14, iPhone 15, iPhone 16 and iPhone 17 have all started at $799. That’s four years without a price increase, despite inflation, tariffs and other factors. The M4 MacBook Air costs the same as the M1 model, although there was a price rise for a couple of years. The current Mac mini actually costs less than the 2020 version.
When Apple does increase prices, they’re usually accompanied by significant new features. The iPad Pro price jumped when the LCD was replaced by an OLED screen, for example. This year, the first folding iPhone is expected to be expensive, but because of its cutting-edge foldable display, not the cost of memory chips.
In short, while it’s possible that rising costs for RAM and other memory will force up the price of iPhone and Mac models in 2026, it’s not definite. In contrast, the situation is very different for buyers of Windows PCs and Androids — price hikes for many of those are inevitable.
Ed Hardy has been writing full-time about tech for 25 years, and using it for much longer than that. His intro to Apple was a Macintosh Classic II (which he still has), but now he uses a 13-inch iPad Pro as his primary computer. He’s written for NotebookReview, TabletPCReview, and Brighthand, as well as other sites.
