A global shortage has forced every electronics manufacturer — including Apple — to pay twice as much for RAM and flash storage compared to 2025, and 10 times more than in 2020. This crisis stems from manufacturers shifting production capacity toward AI data centers rather than consumer devices.

DRAM and NAND are critical components used in everything from smartphones to cars. Apple's ability to control component costs through bulk purchasing has been undermined as memory makers prioritize High Bandwidth Memory (HBM) and NAND for AI data centers. Companies like OpenAI and Google are driving unprecedented demand for these specialized memory types.

The shortage will persist through 2028, with analysts predicting peak constraints in 2026-2027. Building new production facilities takes years, and memory makers remain cautious after a 2023 oversupply that crashed prices. While Samsung, SK Hynix, and Micron are expanding capacity, new facilities won't be fully operational until mid-2027 at the earliest.