📊Executive Summary

The article discusses the anticipated price increase for Apple's iPhone 18 models due to ongoing memory shortages. As demand for high-performance memory rises, Apple faces challenges in negotiating favorable terms with suppliers, potentially leading to a price hike of £40 to £80 ($50 to $100) for the new models. This situation is compounded by Apple's strategy to increase the use of custom chips to mitigate rising costs. The introduction of in-house connectivity chips is expected to save Apple significant amounts per unit sold, but the overall pricing strategy remains under pressure from memory supply constraints. This article highlights the critical implications for procurement teams regarding memory sourcing and pricing strategies as Apple navigates a challenging component market....