# Apple plans to pass memory costs on to iPhone buyers

Markdown copy of https://realalpha.app/s/apple-plans-to-pass-memory-costs-on-to-iphone-buyers/ on Real Alpha, the best minutes from long interviews with the people building AI. Cite and link the page, not this copy.

- Speaker: [Mark Gurman](https://realalpha.app/people/mark-gurman/) · Managing editor of consumer technology & chief correspondent for Apple, Bloomberg · Broke news on major Apple hardware, software releases and initiatives, and writes Bloomberg’s Power On column.
- Host: [John Coogan](https://realalpha.app/people/john-coogan/) · Co-host, TBPN · Co-founded Soylent and Lucy; OpenAI bought his show TBPN in April 2026.
- Host: [Jordi Hays](https://realalpha.app/people/jordi-hays/) · Co-host, TBPN · Founded Branded Native; co-founded fintech Capital, which Rho bought.
- Show: TBPN
- Episode: [Apple vs OpenAI, Mustard Controversy, Mark Gurman, Alexis Ohanian, & Morgan Housel Join](https://realalpha.app/v/pOjrLPEMPSg/), Jul 13, 2026
- Moment: 2:09:38 to 2:12:22 of the episode (3 min), playing on https://realalpha.app/s/apple-plans-to-pass-memory-costs-on-to-iphone-buyers/; the episode from there: https://realalpha.app/v/pOjrLPEMPSg/?t=7778

## Quote

> “Everything I'm told is that the cost to build because of the memory makes these phones $**150 to $200 more expensive** a unit.”
> — [Mark Gurman](https://realalpha.app/people/mark-gurman/) at [2:10:32](https://realalpha.app/v/pOjrLPEMPSg/?t=7832) · TBPN

## Takeaways

1. Memory adds an estimated $150–$200 to each iPhone’s build cost.
2. Gurman expects Apple to pass the cost on in September.
3. Apple remains a preferred TSMC customer but is exploring silicon alternatives.

## About this segment

Mark Gurman expects Apple to raise iPhone prices as memory adds $150–$200 to unit costs. He says Apple is unlikely to integrate memory production and is considering other chip suppliers.

From “Apple vs OpenAI, Mustard Controversy, Mark Gurman, Alexis Ohanian, & Morgan Housel Join”, Jul 13, 2026. [Watch the full episode](https://realalpha.app/v/pOjrLPEMPSg/)

## Transcript

From the transcript TBPN publishes with the episode.

[2:09:46](https://realalpha.app/v/pOjrLPEMPSg/?t=7786) What else is what else is new in in Apple world? What else are you covering outside of this?

[2:09:52](https://realalpha.app/v/pOjrLPEMPSg/?t=7792) Lots of stuff lots of stuff to come. Yeah. Apple's gonna start its biggest new product period in its history Yeah. This fall.

[2:10:01](https://realalpha.app/v/pOjrLPEMPSg/?t=7801) And and at higher prices. Right? Like, the the the memory shortage is very real. It was sort of like a delayed announcement post WWDC. But, you know, the the the the strategy there was like rip the band aid off after WWDC, but with enough time for everyone to absorb the news before the products are launched. Is that generally the theory there?

[2:10:24](https://realalpha.app/v/pOjrLPEMPSg/?t=7824) Well, you know, they hit the point where they couldn't impact their margins anymore. Obviously, they're reporting earnings at the end of this month, so they'll talk more about that. Yeah. But the big picture here is the iPhone is going to get its price hike in September. Yeah. Everything I'm told is that the cost to build because of the memory makes these phones $150 to $200 more expensive a unit.

[2:10:46](https://realalpha.app/v/pOjrLPEMPSg/?t=7846) Yeah. So I think they're going to raise the prices by 150 to $200. Yeah. They don't want to get up that margin. I mean, fact that nobody's buying the Vision Pro and Apple hyped the price up by $200 anyways because of the memory tells you everything you need to know. This is not a company that's going to compromise on its margins.

[2:11:01](https://realalpha.app/v/pOjrLPEMPSg/?t=7861) Sure. Is there any world where vertical integration around memory is on the table? Like, is going deeper there locked? Even like the Southwest bought all those, like, futures on oil and had cheap gas and cheap flights for a long time. Like, you know, even if you're not AGI filled and you don't build the foundation model, there's still a world where you go lock up really long memory contracts and keep your prices down.

[2:11:24](https://realalpha.app/v/pOjrLPEMPSg/?t=7884) I don't see it happening. Mhmm. Just not culturally the value? I don't yeah. I don't see it happening. How is I think they're trying to get the suppliers to expand.

[2:11:33](https://realalpha.app/v/pOjrLPEMPSg/?t=7893) Sure. Yeah. How has Apple's relationship with TSMC evolved or changed across the AI boom? Mhmm.

[2:11:43](https://realalpha.app/v/pOjrLPEMPSg/?t=7903) Oh. Well, I think the long and the short of it is that, you know, Apple is still the preferred customer of TSMC Mhmm. But there are plenty of other customers now that are a big piece of the pie. And so I think the relationship still remains very strong. But I don't think this is exclusively because of the AI boom. And you can see Apple looking at secondary potential third suppliers on silicon. So you've seen that with Intel.

[2:12:06](https://realalpha.app/v/pOjrLPEMPSg/?t=7926) They've talked to Samsung as well. But the TSMC relationship, from everything I understand, is still as strong as ever. It's just Apple's not the only game in town as a customer at this point. Mhmm.