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Apple’s Strategy to Maintain iPhone 18 Price Amid RAM Shortage, According to Kuo

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Apple aims to keep iPhone 18 price flat in face of RAM shortage, Kuo says

Apple to Navigate Global Memory Shortage Without Raising iPhone 18 Prices

In response to a global memory shortage, Apple is striving to minimize any potential increase in iPhone 18 prices, as revealed by renowned supply chain analyst Ming-Chi Kuo. Kuo’s insights indicate that Apple intends to absorb the escalating costs associated with RAM prices while ensuring the iPhone 18’s initial price remains stable.

Apple’s Strategic Approach to Memory Pricing

Kuo’s report highlights Apple’s shift to quarterly negotiations with memory suppliers, a departure from the previous biannual discussions. Anticipating further price hikes in upcoming negotiations, Apple plans to offset these expenses through its services sector, encompassing popular subscriptions like Apple Music, iCloud, and Apple TV.

Challenges Beyond Memory Shortages

Beyond the memory crunch, Apple faces additional supply chain constraints as non-RAM components experience scarcity, attributed to suppliers prioritizing the surging demand in the AI industry. The shortage of glass cloth, a crucial material used by tech giants like Apple, Nvidia, AMD, and Qualcomm for printed circuit boards, underscores the broader challenges in sourcing essential resources.

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