Apple(US:AAPL) Hua Er Jie Jian Wen·2026-01-28 05:01Core Viewpoint - Apple is expected to face a similar increase in memory prices in Q2 2026 as in Q1 2026, with a clear strategy to secure chip supply, absorb cost pressures, and capture market share, later compensating for losses through service revenue [1][2]. Memory Price Trends - Samsung and SK Hynix have recently increased the price of low-power DRAM supplied to Apple by nearly 100% compared to the previous quarter, with Samsung's LPDDR chip prices rising over 80% and SK Hynix's by approximately 100% [1][2]. - Apple's memory pricing negotiations have shifted from biannual to quarterly, indicating that price increases are likely to continue [2]. Impact on Profit Margins - The rising memory costs are expected to directly impact the gross margin of iPhones, with Apple’s strategy focusing on leveraging market chaos for profit while managing costs and increasing market share [2][4]. - The overall profitability of memory suppliers like Samsung and SK Hynix is anticipated to improve in Q1, following significant price increases in DRAM [4]. Pricing Strategy for New Products - Apple aims to maintain the starting price of the new iPhone 18 models in the second half of 2026, despite rising costs, which is beneficial for marketing [5]. - Unlike previous years, Apple has only completed negotiations for the first half of the year regarding memory pricing, rather than securing long-term agreements for the entire year [5]. Supply Chain Risks - Apple has recognized that supply chain risks are spreading beyond just memory and T-glass, with potential shortages in other components due to the booming demand for AI infrastructure [6]. - The sharp rise in memory prices is attributed to an imbalance in supply and demand, driven by large tech companies' investments in AI, while suppliers are focusing on more profitable HBM products, leading to tight supplies of traditional DRAM and LPDDR [6].