The global RAM and SSD crisis is causing significant price increases for electronics, with manufacturers experiencing massive profits. The situation is expected to worsen before it improves, and the eventual fix may not benefit consumers.

DDR-5 DRAM prices have surged dramatically, with a pair of 16GB sticks increasing from around $100 in February 2025 to approximately $600 currently. SSDs and hard drives have also seen price hikes, doubling and tripling in cost respectively. While Apple's prior deals offered some insulation, the company is now impacted by these trends, potentially leading to more expensive iPhones.

The surge in demand is largely driven by AI data centers, which consume specialized High Bandwidth Memory (HBM). This focus on HBM, which is more profitable for manufacturers, diverts resources from consumer DRAM production, exacerbating the shortage. Industry leaders from Micron, Samsung, and SK Hynix anticipate supply constraints persisting through 2028, with some forecasting next year to be the worst in industry history from a supply perspective.

Expanding production capacity is a lengthy process, taking years to establish new foundries. While manufacturers are now investing in expansion, the immediate future points to continued scarcity. Apple is also exploring sourcing from Chinese supplier CXMT, though potential U.S. government sales restrictions due to national security concerns present a challenge.