Apple is reportedly paying upwards of $70 for a 12GB memory module, a 230% increase from 2025.

To minimise the impact of the crisis, Apple executives have reportedly taken up semi-permanent residence at a South Korean hotel.

The location is within a reasonable distance of the Samsung and SK hynix plants that produce the coveted components. Taking an in-person approach, the goal is to sign two or three-year contracts.

The two suppliers have been reluctant to agree to long-term deals due to a surge in AI and data centers globally — both requiring computing and memory power at unprecedented rates.

With the rapid uptake of agentic AI agents by corporate entities, systems need to be built fast, shipped fast and installed fast — and many of these AI companies are willing to pay top dollar compared to phone manufacturers to secure supply. In practice, one memory component used in a data center serves more customers than one used in a mobile phone or computer, allowing AI companies to outbid phone manufacturers.

However, demand from AI data centers could fall sooner than expected, leading to moderating memory prices. That said, many analysts see few signs of relief for consumers and businesses until 2027 or 2028.