Apple 'iPhone 7' manufacturing demands causing tight RAM supply, increased pricing

Posted:
in General Discussion
Global DRAM prices are continuing to climb on the strength of orders for the "iPhone 7" and demands from competitive China-based manufacturers, causing a ripple effect across the entire computing industry.




"DRAM prices in August were on an upward trend as they were in the previous month," said channel monitor DRAMeXchange in a report. "With the official launch of the next iPhone release on September 7, the entire smartphone supply chain is now under a critical period of intense stock-up activities."

As a result of the ramp-up and demand applied to the supply chain by the "iPhone 7," major DRAM suppliers are making more of the mobile-specific RAM. As a side effect, less PC RAM is available, constraining supply, and increasing prices.

Prices across the board for mobile and desktop RAM are expected to keep climbing for the remainder of the year, according to the report.

Rumors peg 2GB of application RAM in the smaller "iPhone 7." However, the "iPhone 7 Plus" is anticipated to have 3GB of RAM, boosting demand for the commodity more than needed for the 2015 iPhone 6s family release.

Recent reports suggest that the fall 2016 "iPhone 7" expected to be revealed on Sept. 7 won't have a major exterior redesign, as there is "new technology in the pipeline" that is taking time to fully exploit. Parts and details leaked from manufacturing suggest that the design is nearly identical to that of the iPhone 6s, minus the headphone jack.

The 2015 iPad Pro 12.7-inch model is the only iOS device to exceed 2 GB of RAM at this time, with 4 GB installed. The iPhone 6s, 6s plus, and the 9.7-inch iPad Pro all have 2 GB of RAM.

Comments

  • Reply 1 of 19
    But....
      Isn't the number of deviced ordered for iPhone 7 going to be a lot less than for last years model?
    If this actually is the case then I wonder if some 'entpreneurs' have been ordering RAM to drive the price that Apple pays up thus creating the shortage?
    Or did they forget to place the order for RAM from Samsung?
     
  • Reply 2 of 19
    But....
      Isn't the number of deviced ordered for iPhone 7 going to be a lot less than for last years model?
    If this actually is the case then I wonder if some 'entpreneurs' have been ordering RAM to drive the price that Apple pays up thus creating the shortage?
    Or did they forget to place the order for RAM from Samsung?
     
    I'm skipping the upgrade from my 6S+ - mainly because I'm getting my wife a 128GB(256GB?) 7+ as she's a photo bug...and getting a new Apple Watch for myself.
    jdgazoldbluegmc50
  • Reply 3 of 19
    I'm getting a 7 and a 7+ for my wife and I. Apple Watch, depends if they update the Hermès, and won't be until I get EVGA's Classified 1080 in SLI for my Windows tower (because as Oculus said, VR is expensive in computing power). But REALLY, what I care about is the MBP upgrade. Please get it out of the door, Apple. I beg of you ;)
  • Reply 4 of 19
    gatorguygatorguy Posts: 18,731member
    But....
      Isn't the number of deviced ordered for iPhone 7 going to be a lot less than for last years model?
    If this actually is the case then I wonder if some 'entpreneurs' have been ordering RAM to drive the price that Apple pays up thus creating the shortage?
    Or did they forget to place the order for RAM from Samsung?
     
    "...orders for the "iPhone 7" and demands from competitive China-based manufacturers"

    Those China OEM's are growing fast. Combined with the huge numbers of iPhone7's I'm not surprised to see the market for mobile DRAM is pretty darn good right now. 
  • Reply 5 of 19
    gatorguygatorguy Posts: 18,731member
    But....
      Isn't the number of deviced ordered for iPhone 7 going to be a lot less than for last years model?
    If this actually is the case then I wonder if some 'entpreneurs' have been ordering RAM to drive the price that Apple pays up thus creating the shortage?
    Or did they forget to place the order for RAM from Samsung?
     
    "...strength of orders for the "iPhone 7" and demands from competitive China-based manufacturers"

    Between those fast growing Chinese OEM's and a new iPhone model release I'm not at all surprised to see a darn healthy mobile DRAM market. 
  • Reply 6 of 19
    But....
      Isn't the number of deviced ordered for iPhone 7 going to be a lot less than for last years model?
    If this actually is the case then I wonder if some 'entpreneurs' have been ordering RAM to drive the price that Apple pays up thus creating the shortage?
    Or did they forget to place the order for RAM from Samsung?
     
    You must be new around here.  Or a terrible troll.

    Apple ensures it's the other way around.  That's [one reason] why Tim Cook is running the most ruthlessly effective supply chains....
    It started with the iPods.  Using their Overseas Cash, Apple effectively buys contracts for their components several months in advance paying up front to suppliers.   They ensure the suppliers have the capacity to meet their needs, buy that capacity, and lock in a price for a production run, and severe penalties if a supplier can't deliver.  

    In many cases Apple basically buys the production line capital equipment needed for their capacity, and setting the ongoing payments to pay for materials and labor and an agreed upon profit for the supplier.  In short no up front risk to the supplier, very managed risk for Apple (worst case apple buys too much production line, but no inventory).

    Any speculation buying will only hurt apple competitors.  Apple has already set their price and supplier delivery schedules months ago.
    ronn
  • Reply 7 of 19
    wizard69wizard69 Posts: 12,468member
    I was actually hoping for RAM upgrades across the board for iPads.  I suspect this is possible as we haven't heard rumors otherwise.   IPad can use all the performance advantages Apple can throw at it.   

     For iPhone I don't really care anymore because 2GB does OK in that platform.   My only real concerns if the improved on board AI capabilities end up using a lot more RAM thus cutting the application allotment. 

    In in any event RAM is basically a commodity right now and as such prices are subject to all sorts of pressures and sadly a lot of speculation.  As someone already mentioned Apple addresses a lot of its supply demands up front, it is hard to connect Apple directly to price variations especially when manufactures have been supplying RAM to Apple for years now.   
  • Reply 8 of 19
    foggyhillfoggyhill Posts: 4,692member
    Capriguy said:
    I still love my iPhone 3GS. I pass
    I've got one and they're really slow for web browsing (because web pages are now pigs).
    It's also almost impossible to get new Apps for them (you're mostly stuck with what you downloaded before late 2014)

    You must also have changed the battery at least once (and probably twice).
    I changed it once 2 years ago.

    Now, got a 6s as my main phone.
    tycho24
  • Reply 9 of 19
    netroxnetrox Posts: 593member
    I am not getting how iPhone RAM would cause RAM shortage considering that the RAM in iPhone is totally different from desktop/mobile RAMs. 
  • Reply 10 of 19
    wizard69wizard69 Posts: 12,468member
    netrox said:
    I am not getting how iPhone RAM would cause RAM shortage considering that the RAM in iPhone is totally different from desktop/mobile RAMs. 

    Actually it isn't that much different. It really depends upon the specific hardware you are taking about. The Mac Mini for example uses very low power RAM that likely isn't much different than what is in an iPhone. Mainstream desktops of course often implement cheaper RAM but the production equipment it is produced on is often the same. In any event I detect a bit of BS in this article, mainly because the desktop market and even the laptop market has crashed. Sales in this area are still terrible so RAM demand for these products isn't there. If anything prices are going up due to low demand and thus lower volume manufacturing.
  • Reply 11 of 19
    fallenjtfallenjt Posts: 3,837member
    wizard69 said:
    I was actually hoping for RAM upgrades across the board for iPads.  I suspect this is possible as we haven't heard rumors otherwise.   IPad can use all the performance advantages Apple can throw at it.   

     For iPhone I don't really care anymore because 2GB does OK in that platform.   My only real concerns if the improved on board AI capabilities end up using a lot more RAM thus cutting the application allotment. 

    In in any event RAM is basically a commodity right now and as such prices are subject to all sorts of pressures and sadly a lot of speculation.  As someone already mentioned Apple addresses a lot of its supply demands up front, it is hard to connect Apple directly to price variations especially when manufactures have been supplying RAM to Apple for years now.   
    Were you the same guy who was okay with 1GB of RAM before?
  • Reply 12 of 19
    fallenjtfallenjt Posts: 3,837member
    Capriguy said:
    I still have my iPhone 3GS. I pass
    Yeah, for minimally basic user who only cares about texts and calls, 3GS is already overkilled!
  • Reply 13 of 19
    I still have my 3GS, which has a lot of dead pixels by now. It's my local phone in Asia. 
  • Reply 14 of 19
    lkrupplkrupp Posts: 6,091member
    Wait. What? Analysts and pundits have been telling us that iPhone sales are dropping like whale dung to the bottom of the ocean. Forbes has an article asking the question, “Is Apple stock even worth owning anymore?” AI trolls are adamant not a single iPhone 7 will be sold if the 3.5mm jack is gone. Now we’re being told Apple is making so many iPhone 7s that RAM supply and prices are being pressured up. Which is it, you asshats? Doomed or prospering?
    edited September 2016
  • Reply 15 of 19
    eriamjheriamjh Posts: 1,055member
    I thought the ram was built into the AX chips...   The flash is a separate chip.  
  • Reply 16 of 19
    tzeshantzeshan Posts: 1,678member
    But....
      Isn't the number of deviced ordered for iPhone 7 going to be a lot less than for last years model?
    If this actually is the case then I wonder if some 'entpreneurs' have been ordering RAM to drive the price that Apple pays up thus creating the shortage?
    Or did they forget to place the order for RAM from Samsung?
     
    You forgot that the base model of iPhone 7 will be 32 GB flash memory instead of 16 GB for iPhone 6S.  This effectively doubles the total amount of memory to be used. 
  • Reply 17 of 19
    fallenjt said:
    wizard69 said:
    I was actually hoping for RAM upgrades across the board for iPads.  I suspect this is possible as we haven't heard rumors otherwise.   IPad can use all the performance advantages Apple can throw at it.   

     For iPhone I don't really care anymore because 2GB does OK in that platform.   My only real concerns if the improved on board AI capabilities end up using a lot more RAM thus cutting the application allotment. 

    In in any event RAM is basically a commodity right now and as such prices are subject to all sorts of pressures and sadly a lot of speculation.  As someone already mentioned Apple addresses a lot of its supply demands up front, it is hard to connect Apple directly to price variations especially when manufactures have been supplying RAM to Apple for years now.   
    Were you the same guy who was okay with 1GB of RAM before?
    1GB ram in the iPhone wasn't needed until it was, and that's when Apple updated it. nobody expects these specs to remain static for eternity, but my money is always on the actual professionals building these products and never on the armchair-engineers, who demand things now and decry doom and failure. that's just hyperbole. there's obviously a roadmap and I've had little reason to worry about it or doubt the pros. 
    edited September 2016
  • Reply 18 of 19
    tzeshan said:
    But....
      Isn't the number of deviced ordered for iPhone 7 going to be a lot less than for last years model?
    If this actually is the case then I wonder if some 'entpreneurs' have been ordering RAM to drive the price that Apple pays up thus creating the shortage?
    Or did they forget to place the order for RAM from Samsung?
     
    You forgot that the base model of iPhone 7 will be 32 GB flash memory instead of 16 GB for iPhone 6S.  This effectively doubles the total amount of memory to be used. 
    ram and storgage aren't the same thing. 
  • Reply 19 of 19
    Samsung is gonna love this. They have 40% market share of the DRAM market. 
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