Apple's iPhone Sales Hit Memory Squeeze as AI Demand Rises

Apple's massive iPhone production is facing a memory crunch as artificial-intelligence data centers gobble up an increasing share of global chip capacity. According to The Verge, some smartphone-memory prices have more than quadrupled, with potential relief possibly delayed until late 2027 or 2028.

The top memory manufacturers, including Samsung, SK Hynix, and Micron, control around 90% of the market. As a result, they can prioritize high-bandwidth memory for deep-pocketed AI customers, leaving smartphone producers to compete over conventional DRAM supply.

Apple's enormous purchasing power offers some leverage, but it cannot build new factories overnight. The financial stakes are significant: Apple's latest statements show $54.25 billion of iPhone revenue, representing 49.6% of quarterly sales, while companywide gross margin reached 50.1%.