Apple’s memory crisis is a big red flag for tech

The memory crisis is intensifying for Apple, facing difficulties in obtaining sufficient memory chips for its upcoming iPhone 18 Pro series smartphones, according to tech journalist Tim Culpan. Apple and its assembly partners are still trying to secure enough memory, confident they can meet initial demand, but concerned about extended wait times as retail inventory dwindles.

The new TSMC process used in the A20 processor is causing issues, with processors piling up while waiting for memory chips. Despite securing supply for TSMC's new processors, Apple is struggling with memory chip production constraints, affecting not just iPhones but also Macs, with customers facing delays in receiving new devices.

This memory shortage is impacting the entire industry, with Gartner predicting a significant decline in device shipments and rising prices for memory and SSD storage. While larger brands like Apple can absorb higher costs through higher margins and reduced promotions, smaller players may face existential challenges, as they lack the margins to sustain higher memory prices while delivering affordable products.

The impact of the memory shortage extends beyond consumer electronics, potentially affecting the military and defense markets as high-performance memory and storage supplies become constrained. Apple has responded to the situation by introducing an Apple Upgrade leasing service, aiming to make devices more affordable for consumers.