There has been a lot of discussion lately about skyrocketing memory chip prices, and how that might impact the iPhone and other Apple devices.


For those who are not caught up to speed, prices for both DRAM and NAND storage chips have been surging lately due to increased demand from companies building out AI servers. Nvidia has reportedly surpassed Apple as chipmaker TSMC's biggest customer as a result of this boom, despite record-breaking iPhone sales last quarter.

The demand for memory chips for AI servers is so high right now that reports have indicated that chipmakers such as TSMC, Samsung, and SK Hynix cannot keep up with supply despite operating at or near full capacity. This supply-demand imbalance is allowing for chipmakers to raise prices for memory chips, with Taiwanese research firm TrendForce today estimating that conventional DRAM and NAND contract prices could rise up to 90–95% and up to 55-60% this quarter, respectively, compared to last quarter.

Apple surely still has plenty of leverage as one of the world's largest consumer electronics makers, but it is not entirely immune to the pricing situation.

On an earnings call last week, Apple CEO Tim Cook acknowledged that the rising chip prices will have a "bit more of an impact" on the company's gross margin in the current quarter. Nevertheless, Apple forecasted that its revenue will rise 13% to 16% in the quarter on a year-over-year basis, so the company still expects growth.

Cook said Apple "will look at a range of options to deal with" the rising prices, if necessary, but he did not mention any specific plans.

While the situation is rapidly evolving, it seems unlikely for now that one of those measures would be raising iPhone prices, for a few reasons.

First, Apple forecasted that its overall gross margin will remain strong at 48% to 49% in the current quarter, so the company is managing for now.

Second, Taiwanese supply chain publication DigiTimes today reported that some suppliers expect Apple to intensify its cost-cutting demands going forward. It is unclear if this refers to DRAM and NAND chip suppliers, or if Apple will try to negotiate more favorable deals with suppliers of other components to offset the impact.

Apple has historically been extremely sensitive about passing on price increases to customers, and it is known to have excellent supply chain management.

In line with that, supply chain analyst Ming-Chi Kuo recently said that Apple's current plan for the iPhone 18 Pro models later this year is to "avoid raising prices as much as possible." He predicted that Apple will "at least keep the starting price flat," suggesting that iPhone 18 Pro models will not cost more than iPhone 17 Pro models.

Kuo was specifically commenting on starting prices, so it remains to be seen if Apple increases the prices of its already-overpriced storage upgrade options.

Related Reading: Apple May Break a 10-Year Chip Strategy
This article, "Will Apple Raise iPhone Prices Due to Skyrocketing Memory Chip Prices?" first appeared on MacRumors.com

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Apple's rumored plan to enter the smart glasses market by late 2026 is already reshaping the global AR optics supply chain, according to DigiTimes.


According to the paywalled report, demand for smart glasses from the likes of Meta is rising steadily, but the industry now expects Apple's equivalent product to act as the primary catalyst for large-scale commercialization. Multiple suppliers across Taiwan's optical sector have apparently increased capital expenditure to expand capacity and shift research priorities toward AR technologies, citing Apple's expected requirements.

For example, Kinko Optical has positioned itself as a key supplier by opening a new AR, VR, and MR research center, backed by an investment of about $5.6 million. Kinko is currently the only Taiwanese company developing both nanoimprint optical waveguides and optical engines at the same time, technologies that are essential to modern AR glasses designs. Joint development projects with clients are expected to begin in 2026, aligning with the rumored launch timelines of major new products from brands like Apple.

Other Taiwanese suppliers are moving in the same direction. Asia Optical is accelerating development of AR, VR, and metalens products and has partnered with Singapore-based MetaOptics to co-develop metalens technology. JMO Corp. has already entered AR glasses supply chains, while Aiimax Innovation has completed metalens samples now undergoing brand certification.

Samsung has already announced plans to launch AR glasses in 2026, while Apple is expected to introduce its first smart glasses by the end of the year. Apple's entry is expected to increase volumes, stabilize supply chains, and lower component costs, prompting Taiwanese suppliers to position themselves more aggressively as the market for smart glasses expands.
This article, "Apple's Smart Glasses Plans Already Triggering Industry Changes" first appeared on MacRumors.com

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Apple's disappointing iPhone Air sales are causing major Chinese mobile vendors to scrap or freeze their own ultra-thin phone projects, according to reports coming out of Asia.


Since the ‌iPhone Air‌ launched in September, there have been reports of poor sales and manufacturing cuts, while Apple's supply chain has scaled back shipments and production.

Apple supplier Foxconn has reportedly dismantled all of its production lines for the ‌iPhone Air‌, while Luxshare, another supplier, stopped production at the end of October.

As a result of the device's poor reception among consumers, rival smartphone manufacturers including Xiaomi, Oppo, Vivo, and others have either canned or adjusted their development plans for Air-style models, and reallocated eSIM solutions intended for the devices to other production lines.

Xiaomi reportedly planned a "true Air model" to rival Apple's offering, while Vivo targeted thinness within its mid-range S series. Both companies are now said to have halted related projects but have yet to officially comment.

Apple relied on the iPhone Air's new look to generate excitement – it's the first major redesign of the iPhone since the iPhone X introduced Face ID and an all-display front in 2017. However, achieving a super-thin 5.6 mm profile required trade-offs. The iPhone Air uses a smaller battery and a single rear camera, yet still carries a premium price.

Starting at $999, it seems too expensive for what many buyers view as style over substance. It sits only $100 below the $1,099 iPhone 17 Pro, which offers a triple-lens camera system and far better battery life.

The tepid consumer response is also said to have forced Apple back to the drawing board: a report from The Information claims Apple has delayed the second-generation iPhone Air while it redesigns the device to potentially fit in a second camera and improve battery life.

Apparently it's been a similar story for Samsung's Galaxy S25 Edge, the Korean company's equivalent ultra-thin offering. Samsung has reportedly cancelled the Galaxy S26 Edge and halted the production of the Galaxy S25 Edge, owing to poor sales.

(Via DigiTimes.)
This article, "iPhone Air Flop Sparks Industry Retreat From Ultra-Thin Phones" first appeared on MacRumors.com

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