Apple warns memory costs are starting to bite as Samsung, SK Hynix prioritise AI chips

Core Insights - Apple is experiencing pressure on profitability due to rising memory chip prices, which is expected to impact the current quarter more significantly than the previous holiday quarter [1][2] - Demand for the iPhone 17 has surged, particularly in China and India, leading to an increased need for memory chips [3] - Samsung Electronics and SK Hynix, which dominate the DRAM chip market, have warned that the worsening shortage of DRAM chips will affect computer and smartphone manufacturers, leading to margin pressure and potential supply chain disruptions [4] Industry Trends - The shift towards building AI infrastructure has led chipmakers to prioritize high-bandwidth memory (HBM) for AI servers, resulting in a squeeze on conventional DRAM chip supply [5] - Manufacturers are adjusting their product strategies in response to the memory chip price surge, with some adopting more conservative shipment plans and considering adjustments to memory chip specifications [6] - Research firms IDC and Counterpoint predict a decline in global smartphone sales by at least 2% this year, reversing earlier growth forecasts, while the PC market is expected to shrink by at least 4.9% in 2026 [6]