Apple faces imminent iPhone price hikes amid chip shortage - MSN

Apple faces imminent iPhone price hikes driven by global semiconductor supply constraints, with memory cost increases making price adjustments unavoidable. Analysts project iPhone 18 Pro models to sta... Read original →

The insatiable demand for DRAM and NAND from AI data centers has triggered a cascading effect, pulling memory allocation away from mobile devices. Apple’s iPhone 18 Pro price hike isn’t just a supply hiccup—it’s a structural cost pass-through driven by AI’s resource dominance. Foundries like TSMC and Samsung prioritize high-margin AI chips (e.g., NVIDIA), starving smartphone SoC memory allocations. U.S. export controls on advanced equipment indirectly constrain production flexibility in Taiwan, China, and South Korea, amplifying supply fragility. Android rivals may follow with selective price increases, but lack Apple’s pricing power—likely accelerating component downgrades in mid-tier models. Over the next 12–24 months, sustained memory inflation will permanently reset hardware cost floors, pushing OEMs to reposition flagships as profit anchors while standard models shed premium features. AI didn’t just disrupt computing—it redefined the economics of every connected device.