According to the provided industry analysis, the explosive growth of the artificial intelligence industry is causing unprecedented impact on the consumer electronics supply chain, with Apple being the first to face this challenge. Mike Howard, a TechInsights analyst, recently stated in an interview with The Wall Street Journal that the rate of increase in memory chip prices has reached historical highs, and it is expected that DRAM prices will quadruple by the end of this year compared to 2023, while NAND flash memory prices will also surge by more than three times.

Apple phone, iPhone12 (3)

This sharp increase in costs is directly reflected in the entry-level iPhone 18, which is set to be released this autumn. The cost of just the memory component alone could be $57 higher than that of the current iPhone 17, which is a significant blow to profit margins for a device with a starting price of $799. This cost pressure also explains why there have been rumors about Apple possibly delaying the release of the iPhone 18.

The core reason lies in AI giants such as OpenAI, Google, and Meta competing at all costs for scarce components, and even NVIDIA has replaced Apple as the largest customer of TSMC. This shift in supply chain power is forcing traditional technology hardware giants to reassess their cost structures and release strategies.