New York, June 20, 2026, 17:01 EDT
- Goldman Sachs cut its 2026 and 2027 smartphone shipment forecasts, pointing to rising memory costs.
- Apple’s planned price hikes show the AI chip crunch is now hitting even the biggest player in consumer electronics.
- Micron’s June 24 earnings are now seen as a test of how much further the memory rally can go.
Goldman Sachs trimmed its global smartphone shipment estimates for 2026 and 2027 on Saturday after memory-chip costs jumped. The bank now expects volumes of 1.14 billion units in 2026 and 1.17 billion units in 2027, blaming tighter supply and high memory prices. The higher costs, Goldman said, are starting to show up in the prices of phones and laptops.
Apple’s downgrade comes just days after CEO Tim Cook told the Wall Street Journal the tech giant would hike product prices to counter higher DRAM and NAND costs. Both chips go into iPhones, Macs, and iPads. “Price increases are unavoidable,” Cook said, calling the setup “unsustainable.” Reuters
That’s key since Apple isn’t a fringe player in the market. It sits at the top of hardware makers, known for deep supply relationships, loyal premium buyers and strong cash reserves to back suppliers. If Apple ends up raising prices, Android or PC vendors with thin margins have less room to move.
Apple has about 20% of global smartphone shipments but controls more than two-thirds of phones priced above $600, and over three-quarters of those costing more than $1,000, The Wall Street Journal reported. That gives Apple more pricing power than Samsung, Xiaomi or other competitors. But the next iPhone cycle will put that power to the test as buyers decide how much they’re willing to spend.
Data center demand is putting stress on supply. AI servers rely on high-bandwidth memory, or stacked DRAM, to support new chips, IDC said. This has meant less capacity for standard memory chips that go into consumer tech. Samsung Electronics, SK Hynix, and Micron have pushed cleanroom space and budgets into AI-driven, higher-margin products, leaving less supply for smartphones and PCs, according to IDC.
Cook didn’t say which Apple products could see higher prices or what the increases might look like. He said Apple is ready to use its balance sheet to boost supply, but he’s not considering building memory plants. That’s the limit here: Apple can design chips, sign suppliers, carry inventory—it can’t snap its fingers and make more DRAM or NAND.
Gene Munster, managing partner at Deepwater Asset Management, told CNBC that Cook bringing up price hikes was “a signal that this is that big of an issue,” 24/7 Wall St. reported. Munster guessed Apple could take some of the blow but would likely push through a 5% to 10% price jump for iPhones. 24/7 Wall St.
Micron Technology reports fiscal Q3 numbers on June 24. The stock is in focus as investors look for clues about AI demand and memory prices, hoping both can push up chip profits. The company has scheduled its earnings call for 2:30 p.m. Mountain time.
Micron shares have climbed 298% this year, Reuters said Friday. The company’s earnings are seen as a check on whether demand from data centers is still picking up. “There’s still a lot of juice,” Andy Pratt, director of investment strategy at Burney Company, said about the AI trade. Reuters
Apple posted March-quarter revenue of $111.2 billion, up 17% from last year. iPhone revenue hit a March-quarter record. The board cleared another $100 billion for share buybacks, giving Cook some financial backup for his remarks.
But it’s not just margins under threat. Gartner is warning that soaring memory costs could drag down 2026 smartphone shipments by 8.4% and PC shipments by 10.4%. That could also push smartphone prices up 13% from 2025. Higher prices may stretch out replacement cycles, especially for buyers who aren’t shopping at the high end.
Apple has little control here. A more expensive iPhone Pro could fare better than a mid-range Android, and U.S. and European financing helps. But if memory prices stay high through the holidays, the industry could see a bigger split: premium brands keep margins, cheaper phones either ship fewer units or get downgraded. Omdia’s Zaker Li says high-end phones should stay “relatively resilient,” but his base case is a 7% drop in global smartphone shipments this year. semiconductor-today.com
