A Wall Street Journal report, summarized by MacRumors, says the memory shortage has turned the tables on Apple's flash storage suppliers. Companies that Apple once pressed hard on price are now the ones with leverage.
A buyer used to getting its way. As the iPhone grew, Apple became the world's largest buyer of flash storage, and that scale gave it considerable bargaining power. According to the Journal, Apple at times ordered flash at very low prices and then declined delivery when market prices were falling, leaving suppliers holding unsold chips, including custom parts. Executives at Kioxia, the Japanese maker formerly known as Toshiba Memory, reportedly likened the experience to Charlie Brown and the football.
The report also says Apple pushed flash makers to open their books so it could see their sales and keep rivals from securing better terms. In one episode around the end of 2015, Sandisk reportedly refused Apple's request for extra supply because other customers would pay more. The Journal says Apple's then procurement chief, Tony Blevins, responded with a threat directed at a Sandisk salesman, saying Sandisk's chief executive would "crawl on his knees" back to Apple. The report does not mention SK Hynix or Samsung.
The balance has shifted. The Journal attributes the change to a severe shortage of memory chips, driven by AI companies building data centers that consume large amounts of flash and RAM. TechInsights estimates that about two years ago Apple bought nearly twice as much flash as Microsoft, Amazon, Meta and Google combined, while those hyperscalers now buy roughly double Apple's share.
What it means for prices. Apple has raised prices on more than a dozen products this year, including iPhones, iPads, Macs, HomePods and Apple TV, and has pointed to the memory shortage. Former CEO Tim Cook reportedly called the increases "unavoidable." TechInsights estimates Apple's gross profit on the $200 step from 256GB to 512GB on the iPhone 18 Pro at $134, down from $185 for the equivalent iPhone 17 Pro upgrade last year.
Outlook. An Apple spokesperson told the Journal that the company values its long-standing supplier partnerships and looks forward to continuing that work. SK Hynix, meanwhile, forecast on an earnings call this week that the shortage will last through 2030, which MacRumors notes could mean the balance of power does not swing back toward Apple for at least four years.
These figures are third-party estimates and press reporting rather than Apple disclosures. Apple is due to report fiscal fourth-quarter results on November 2, where memory costs and pricing may well come up.
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