iPhones To Get Costlier? Apple Mulls Price Hikes Amid Memory Chip Shortage, Says CEO Tim Cook - NDTV Profit

Apple faces rising costs due to memory chip shortages, with CEO Tim Cook suggesting potential iPhone price increases. This reflects the broader semiconductor industry challenges, particularly the impa... Read original →

The memory chip shortage is triggering a cascading redesign across smartphone tech stacks: rising NAND and DRAM prices are not only inflating BOM costs but forcing Apple to re-optimize co-design between eMMC/UFS controllers and its TSMC-fabricated SoCs. Geopolitical friction amplifies compliance overhead—U.S. export controls combined with concentrated manufacturing capacity in Taiwan, China compel Apple to accelerate assembly shifts to India and Vietnam while reassessing supply allocations from SK Hynix and YMTC. Samsung and Xiaomi may counter with 'value-tier buffering strategies,' targeting price-sensitive segments with mid-range devices. Over the next 18 months, the industry will settle into a new equilibrium of high pricing alongside elevated inventory. Apple’s move isn’t merely cost pass-through—it’s a strategic reaffirmation of premium pricing power. Long-term, this accelerates memory capacity reshoring to the U.S., Japan, and Europe, though yield ramp and process maturity remain critical constraints.