flash memory suppliers

Flash memory prices have quintupled over the past year, driven largely by demand from AI datacenters. Apple, once the dominant buyer with strong pricing leverage, now competes with hyperscalers for NAND capacity. Suppliers such as Kioxia are locking in significantly higher prices through long-term contracts, shifting negotiating power firmly toward chipmakers.

A commentary argues that Apple long used its market power to squeeze flash memory suppliers on pricing, but the AI datacenter boom has shifted the balance. With chip demand surging for AI infrastructure, memory makers now have customers competing for supply, reducing Apple's bargaining power and giving the beleaguered sellers new pricing leverage.

Flash memory prices have jumped roughly fivefold as artificial intelligence workloads drive up demand for storage. Reporting suggests Apple can no longer pressure its memory suppliers into lower prices, leaving device makers to absorb higher component costs. The development raises concerns about rising prices for consumer electronics, while separately in Scottsdale, Arizona, emergency crews responded to multiple swift water incidents during flash flooding.

Wall Street Journal columnist Rolfe Winkler reports that flash storage suppliers long pressured by Apple over pricing are now 'getting their revenge' amid a severe memory chip shortage. With supply constrained, suppliers can demand better terms, shifting negotiating power away from Apple for the first time in years and raising questions about costs for future iPhones and Macs.

The cost of flash storage memory used in iPhones and Macs has risen by 550% compared to 2023, according to the Wall Street Journal. The rapid expansion of data centres built for artificial intelligence has consumed much of the global supply of memory chips, stripping Apple of the bargaining power it once held over flash suppliers. The report suggests consumers could eventually face higher prices for devices with larger storage capacities.