iPhone memory costs could quadruple by 2027

By 2027, memory chips could become the most expensive component inside an iPhone, with their share of the device's bill of materials rising from around 10% today to 45%, the Financial Times reports.

According to JPMorgan analysis cited by the FT, Apple is losing its status as the top-priority customer for chip suppliers, as demand for AI hardware reshapes the entire memory market.

The main competition comes from AI-focused buyers, including Nvidia and the major cloud providers. They are willing to outbid Apple and pay multi-billion-dollar prepayments to reserve capacity at manufacturers such as Samsung, SK Hynix, and Micron.

Apple, which buys memory for roughly 250 million devices a year, is now operating in a market defined by tight supply and a new pricing dynamic, where long-standing relationships no longer guarantee favourable rates.

Rising costs are already pushing the company to rethink its product strategy. The iPhone 18 launch is expected to be split: the flagship Pro models would arrive in the autumn as usual, while the standard model would be pushed back to spring 2027. The move would give Apple more flexibility in managing supply and financial exposure.