Memory Supply Crisis Disrupts Tech Industry
The ongoing memory supply crisis has initiated a ripple effect, unsettling the entire technology sector. Distributors are now compelled to acquire RAM modules with every motherboard purchase.
In a significant shift, NVIDIA has been reported to suspend the inclusion of VRAM chips with GPU dies. This upheaval poses potential financial strains on consumers and manufacturers alike.
While Apple has established a resilient supply chain to mitigate such disruptions, it is still feeling the effects of memory shortages.
The anticipated increase in prices for the iPhone 18 Pro and iPhone 18 Pro Max could be attributed to these circumstances. Nonetheless, Apple’s investment in custom silicon may ultimately prove pivotal in navigating this predicament.
iPhone 18 Pro Models: Potential Price Stability Through Custom Hardware
A recent analysis from United Daily News highlights the obstacles Apple encounters with memory shortages and their ramifications on the pricing of the imminent iPhone 18 Pro series. Following a previous price increase for the iPhone 17 models, another escalation of $50 to $100 could surface, contingent on Apple’s negotiations with memory suppliers.
Additionally, the company is poised to unveil the iPhone Fold next year, coinciding with the iPhone 18 lineup, marking Apple’s inaugural foray into the foldable flagship arena.
This promises to be a notably costly series launching in 2026, a situation aggravated by the ongoing memory crisis. However, unlike competitors dependent on various vendors for components, Apple has fortified its strategy by augmenting the number of custom chips in its devices.
The A20 and A20 Pro chips are set to be exclusively integrated into the iPhone 18 Pro, iPhone 18 Pro Max, iPhone Fold, and the foundational iPhone 18. This model is anticipated to undergo a rebranding as the iPhone 20 during its slated release alongside the iPhone 18e in 2027.
These SoCs will utilize TSMC’s advanced 2nm fabrication process, thereby incurring higher costs compared to the A19 and A19 Pro. Nevertheless, Apple’s decision to bypass additional fees to Qualcomm or MediaTek may result in significant savings.
Strategies for Mitigating Price Increases Amid Memory Constraints
The C1 and C1X 5G modems were introduced with the iPhone 16e and iPhone Air this year. The evolving C2 is expected to feature across the complete iPhone 18 lineup.
This next-gen baseband chip is reportedly being mass-produced using TSMC’s economical 4nm process, potentially saving Apple millions in wafer costs. Estimates suggest that the iPhone 16e’s C1 5G modem alone has saved the company $10 per unit sold.
Assuming previous sales figures for the iPhone 16e at 22 million units, this translates to an impressive $220 million in savings—without factoring in avoided royalties owed to Qualcomm for its proprietary technologies.
Furthermore, the N1 wireless chip, which made its debut in the iPhone 17 series, may see either a continuation of its use or the introduction of the N2 for the iPhone 18 launch. Apple’s proprietary solutions free the company from financial obligations to Broadcom or any external partners.
While an exact figure for the savings generated by utilizing three custom chips in the iPhone 18 lineup remains elusive, it is anticipated that these efficiencies will enable Apple to navigate the memory shortage without imposing steeper prices on its flagship models than originally planned.
Source link: Wccftech.com.
