High memory prices to persist until 2028–2030: Why is Apple being blamed for the problem?

The shortage and high cost of memory, driven by the artificial intelligence boom, are likely to become a long-term issue. According to experts, cheap RAM should not be expected in the coming years, and the situation may last at least until the end of the decade.

Micron reports high prices

Micron, one of the largest memory manufacturers, has effectively withdrawn from the mass consumer market, leaving only residual stock. Instead, it is actively signing long-term "Strategic Customer Agreements" (SCA) with 16 major B2B clients for terms of up to 5 years. Clients are locking in prices at current historical highs and making advance payments.

Micron's gross margin for the reporting period reached a record 84.9%, with net profit of $28.9 billion. According to the author of the YouTube channel JayzTwoCents, the company has effectively entered into a legalized collusion with Samsung and SK Hynix to keep prices high at least until 2028–2030.

Apple's role in the crisis

Micron's Chief Business Officer Sumit Sadana hinted in an interview with The Wall Street Journal that aggressive pricing policies by certain large customers during the 2023 downturn exacerbated the problem. Although the company did not name names, experts at 9to5Mac are confident that Apple was the primary subject.

According to Sadana, some clients during the low-demand period drove prices to record lows, leading to negative profitability for manufacturers. As a result, companies were forced to cut investments in capacity expansion.

The Micron executive noted that they told a couple of clients who were very aggressive in pricing at the time that this was not constructive.

Apple has traditionally negotiated hard with suppliers and, through long-term contracts, has secured favorable terms. This strategy helped the company keep production costs low but, according to critics, contributed to shaping a market that was unfavorable for memory production expansion.

What this means for users

Ultimately, ordinary consumers are facing the consequences: laptops, smartphones, gaming consoles, and PCs continue to rise in price. As long as manufacturers' main capacities are directed toward AI servers and long-term contracts with major players lock in high prices, a return to "cheap memory" in the coming years is not expected.

In brief

High memory prices will persist at least until 2028–2030. Micron has withdrawn from the mass market and is locking in maximum prices in long-term contracts with major clients. Experts blame Apple for its aggressive pricing policy in 2023, which led to reduced investment in production, exacerbating the future shortage. As a result, cheap RAM for ordinary users is not expected in the foreseeable future.