Apple's iPhone prices could come under renewed pressure in 2027 as the cost of memory chips rises. Reports say the company has agreed to pay more for memory supplied by Samsung from the beginning of 2027, while growing demand from artificial intelligence (AI) data centres is tightening supply for consumer electronics.

The reported increase involves LPDDR5X RAM and NAND storage, 2 components used in smartphones and other devices. Apple is said to have accepted a price of about $2 per GB for LPDDR5X RAM and about $0.33 per GB for NAND storage. These prices are reportedly 30% to 40% higher than current levels.

Why AI is affecting phone memory costs

AI data centres require large amounts of memory, with demand for High Bandwidth Memory (HBM) rising particularly quickly. Samsung, SK hynix and Micron are reportedly directing more of their production capacity towards high-end memory products used for AI-related work.

That shift is placing pressure on the supply of standard memory used in smartphones and other electronic devices. TechInsights says DRAM and NAND prices had already increased around the 2026 iPhone launch period and are expected to rise further by 2027.

The analysis also says memory could represent more than 30% of the cost of a premium device. This creates a difficult situation for smartphone makers: AI features are increasing the amount of memory required in phones, while the same AI expansion is also contributing to higher memory costs.

Will the iPhone definitely become more expensive?

Apple agreeing to higher memory prices does not mean that the 2027 iPhone will automatically become more expensive by the same amount. The company could absorb part of the additional cost, negotiate different arrangements with suppliers, change the phone's memory configuration or pass some of the increase on to buyers.

However, if memory prices remain high for an extended period, they could continue to add pressure to the overall cost of making smartphones. This is why several reports have raised the possibility of higher iPhone prices in 2027.

Higher prices are already visible in the current lineup

The pressure has also been reflected in the 2026 iPhone range in India. The iPhone 18 Pro currently starts at ₹1,64,900, while the iPhone 18 Pro Max starts at ₹1,79,900.

Apple has introduced changes to the camera, battery, performance and AI features in both models. They include the A20 Pro chip, Apple Intelligence and Siri AI. The iPhone 18 Pro also has a 48MP Fusion Main camera with Variable Aperture.

TechInsights says the average iPhone already contains more than 9GB of DRAM, while the use of 12GB configurations is increasing. As phones add more AI features, their memory requirements may continue to grow.

Android brands could face the same pressure

The issue is not limited to Apple. Samsung, Xiaomi, Vivo, Oppo and OnePlus also buy DRAM and NAND memory. If prices rise across the wider market, Android phones could face similar cost pressure.

one report says Samsung has also discussed higher memory prices with Oppo and Vivo. The decisions taken by those companies and the details of their supply arrangements are not yet clear.

For buyers, manufacturers have several possible responses. They may raise prices, offer models with less RAM or storage, or absorb part of the cost through lower margins. The eventual effect will depend on how long memory prices remain elevated and how each company manages its supply arrangements.

Conclusion

AI-driven demand is adding pressure to the memory market just as smartphones require more RAM and storage for new features. Apple may raise iPhone prices in 2027, but it could also use other measures to manage the higher cost. Other phone brands may face the same challenge.

Frequently Asked Questions

Q. Why could iPhone prices rise in 2027?

Higher memory costs may increase the expense of making iPhones. Reports link the pressure to stronger AI-related demand for memory.

Q. Which memory components are reportedly becoming more expensive?

The reported components are LPDDR5X RAM and NAND storage.

Q. How much memory price increase has been reported?

The reported prices are about $2 per GB for LPDDR5X RAM and about $0.33 per GB for NAND storage, described as 30% to 40% above current levels.

Q. Is a 2027 iPhone price increase confirmed?

No. Apple could absorb some costs, change memory configurations, negotiate with suppliers or increase prices.

Q. Which Android brands could be affected?

Samsung, Xiaomi, Vivo, Oppo and OnePlus could face similar pressure because they also buy DRAM and NAND memory.

Q. How much does the iPhone 18 Pro cost in India?

The iPhone 18 Pro starts at ₹1,64,900 in India, while the iPhone 18 Pro Max starts at ₹1,79,900.

Q. Why does AI require more phone memory?

The article links the growth of AI features with rising RAM requirements in smartphones. TechInsights says average iPhone DRAM has already moved above 9GB, with 12GB configurations becoming more common.