The memory capacity required to run all Siri AI features will force Apple to use at least 12GB LPDDR5X RAM in the iPhone 18 series. While this could increase demand for devices, it could exacerbate the existing memory crisis and increase profits for some suppliers.

According to estimates, iPhone shipments are expected to reach 250 million units in 2027. Apple continues to monitor DRAM supply closely, creating a fierce market environment for its competitors.

Apple Effect on DRAM Market

Apple maintains its lead in annual smartphone shipments, even as it slowly loses negotiating leverage against hyperscale data center operators on DRAM orders. Memory manufacturers such as Samsung, SK hynix and Micron continue to give priority to Apple due to its high shipment volume.

According to KB Securities data, 250 million iPhone shipments are expected to be made in 2027. Apple’s current cash strength makes it easier for it to cover these costs despite the increase in DRAM prices.

The evolution of Siri AI features is causing memory needs to always increase, creating a larger-than-expected supply bottleneck. Apple plans to use 12GB DRAM in the entire series as it cannot keep the technical specifications of the basic model low in the iPhone 18 series.

While this hardware upgrade improves the user experience for activities outside of on-device AI, it poses branch-wide challenges. Increasing memory demand may bring price increases in the iPhone 18 series.

Services Part Services as a Financial Shield

Although Apple’s DRAM stocks are about to run out, the company has a valuable trump card. TF International Securities analyst Ming-Chi Kuo states that Apple’s “Services” section will provide financial support that will offset these price increases.

This strategy allows Apple to defend its leadership in its segment by taking advantage of market turmoil. Unlike its competitors, Apple is able to alleviate the cost pressure created by the DRAM crisis thanks to other billion-dollar businesses.

The use of Siri AI as a marketing tool provides a reason for consumers to switch to new models. How do you think this strategy of Apple will change the competitive stability in the smartphone market?