Apple CEO Responds to Memory Crisis: Evaluating All Options

Apple CEO John Ternus stated in a recent interview that the current memory supply shortage has become a clear crisis, and that Apple's fundamental position is to evaluate and consider all viable options. His remarks are seen as a response to national security concerns raised by the U.S. Congress regarding the testing of China-made memory chips.

At the same time, Apple has passed on the rising memory costs to end-product prices. Following its September product launch, Apple raised prices for older models still on sale to varying degrees: the iPhone Air, positioned as a slim flagship, saw price increases ranging from RMB 800 to RMB 2,300, with the largest hike approaching 20%; all variants of the iPhone 17 and iPhone 17e were raised by RMB 800; and the iPhone 16 now retains only the 128GB version, with its price increased by RMB 600 from RMB 5,399 to RMB 5,999.

Behind this round of price adjustments lies a supply-demand imbalance in memory triggered by increased investment in AI data centers. As original manufacturers prioritize AI-related orders, consumer electronics device makers are facing greater cost pressure in memory procurement.

According to the latest report from CFM (ChinaFlashMarket), demand for server-grade LPDDR5X from NVIDIA's Vera CPU and AMD's Verano CPU could potentially double next year. Beyond server SO-CAMM2 modules, surging demand for LPDDR5X from internet companies' self-developed AI accelerator cards, AI PCs, automotive applications, action cameras, and drones will further squeeze mobile LPDDR5X capacity supply. It is not ruled out that overall server customer demand for LPDDR5X could surpass that of mobile LPDDR5X next year. Original manufacturers will redirect more LPDDR5X capacity toward the server market, further shrinking the supply share for mobile LPDDR5X. Therefore, even if smartphone shipments are suppressed by rising device prices and demand remains sluggish, the overall supply of mobile LPDDR5X will stay tight as manufacturers flexibly reallocate LPDDR5X capacity to the server market. Given the significant price gap between mobile LPDDR5X and server LPDDR5X, manufacturers are expected to push mobile LPDDR5X prices to anchor toward server market levels, further narrowing the price differential. Mobile LPDDR5X prices are projected to surge by more than 20% in Q1 next year.