Apple faces mounting pressure from surging memory chip costs that could force price hikes on future iPhones, according to Bernstein analysis. The tech giant's latest quarterly results showed strong iPhone sales driving revenue of $143.8 billion, 4% above estimates, with gross margins at 48.2%.

However, DRAM and NAND prices have skyrocketed since mid-2025, with DRAM contract prices up 237% and NAND up 70%, based on Bernstein's memory trackers. These increases translate to roughly a 15% rise in iPhone bill of materials costs, potentially requiring comparable price increases to maintain margins. Bernstein analyst Mark Newman expects Apple will offset higher component costs through pricing but anticipates some consumer trade-down effects.

The full impact won't hit immediately due to long-term contracts and staggered cost pass-through. Newman estimates the pressure won't be fully felt until the first full quarter after the iPhone 18 launch. While Apple's fiscal 2026 revenue forecast was raised to $471 billion with gross margin at 48.2%, iPhone margin erosion of about 150 basis points is expected. Despite these challenges, EPS estimates were revised slightly higher to $8.72 for FY26 and $10.35 for FY27.