Apple Least Affected by Rising DRAM Prices

According to recent findings from Counterpoint Research, rising prices for key components like DRAM memory are expected to reduce overall smartphone shipments, with Apple better positioned than others to handle the pressure.

Supply constraints for memory are coming at a time when demand from artificial intelligence data centers is rapidly increasing. Memory manufacturers have shifted production towards high performance chips used in servers, leaving fewer legacy memory chips like DRAM available for consumer devices.

Counterpoint’s updated forecast predicts that global smartphone shipments will decline by about 2.1% in 2026, a notable drop from earlier expectations of modest growth. Higher memory prices have already increased overall manufacturing expenses by an estimated 10 to 25 percent for some devices.

Less profitable brands, particularly those competing in the entry level segment, are likely to be hit hardest as they struggle to absorb the rising costs without shrinking their profit margins.

Despite the broader industry headwinds, Apple is seen as among the least affected by the memory shortage. The company’s strong supply chain, high average selling prices and focus on premium tier devices give it more flexibility to manage component cost increases. Apple’s financial position and long term contracts with suppliers allow it to secure memory at more favorable terms than smaller brands.

Samsung also benefits from its scale and diversified business structure, which includes semiconductor production. Together, Apple and Samsung are expected to outperform many competitors throughout the next year, even if unit shipments dip slightly.

In contrast, brands with thinner margins and heavy reliance on low cost components may need to cut back on certain features or delay product launches to remain competitive. Some Chinese manufacturers like Honor and Oppo are expected to face more significant challenges, especially in the sub $200 smartphone segment.

The memory crisis is also contributing to rising average selling prices across the smartphone market. Counterpoint forecasts that average prices could increase by nearly 7% in 2026 as companies pass on higher component costs to consumers.

Apple’s choice to delay its next base model iPhone until early 2027 is one factor that may also contribute to lower iOS device numbers, although the company’s strong performance in 2025 is expected to help offset some short term impact.