iPhone 18 Prices May Stay Flat Despite 2026 DRAM Shortages

Apple is preparing for higher memory costs in 2026 as global DRAM shortages begin to affect smartphone manufacturers. However, the company plans to keep iPhone 18 pricing steady, at least for base models.

According to Apple analyst Ming-Chi Kuo, Apple renegotiates memory contracts every quarter, with another price increase expected in Q2 2026. This follows a similar hike in Q1, pushing DRAM prices an estimated 10-25% higher than last year.

While rising memory costs will pressure iPhone profit margins, Apple’s massive scale gives it a key advantage. Unlike many Android brands that struggle to secure supply even at higher prices, Apple can lock in long-term agreements and guarantee component availability.

Apple’s Strategy: Absorb Costs, Secure Supply, Grow Market Share

Kuo suggests Apple is using the current supply crunch to its advantage. Instead of passing higher costs directly to consumers, Apple can absorb part of the impact, secure critical components, and strengthen its market position. Any short-term margin hit can later be offset through services revenue.

A few quick thoughts on Apple/iPhone memory price hikes:

1. The 1Q26 LPDDR price hikes mentioned in the news are pretty close to what I’ve heard. NAND flash increases, however, are a bit lower.

2. iPhone memory pricing is now negotiated quarterly instead of every six months, so…

— 郭明錤 (Ming-Chi Kuo) (@mingchikuo) January 27, 2026

Apple may address component pricing during its January 30 earnings call for fiscal Q1 2026, covering October to December 2025. Kuo expects Apple to avoid price increases “as much as possible,” predicting that the base iPhone 18 models will launch at the same starting price as their predecessors.

This mirrors Apple’s recent approach. The standard iPhone 17 remained at $799 despite rising component costs, while Apple raised the iPhone 17 Pro price by $100 after making 256GB the minimum storage option.

AI Demand Could Push Smartphone Costs Higher

Memory is not the only challenge ahead. LPDDR and NAND supplies are tightening as chipmakers prioritize AI server demand over smartphones. With advanced memory increasingly diverted to the AI sector, analysts warn that broader supply chain pressure could push smartphone prices higher across multiple brands in the coming months.

iGeeksBlog Take

This feels like another example of Apple playing the long game. By keeping iPhone 18 prices steady while competitors struggle with supply, Apple is protecting customers while positioning itself to quietly gain market share during a chaotic period. Even if margins take a temporary hit, Apple knows its ecosystem and services revenue can carry the weight.

The bigger question isn’t if Apple can absorb higher memory costs. It’s how much further the gap will widen between Apple and the rest of the smartphone market once this shortage plays out fully.

Would you pay more for an iPhone if memory costs rise? Tell us in the comments.