Apple Faces Storage Pricing Challenges as Rumors Suggest Agreement to Kioxia’s 2x NAND Flash Payment Terms with Quarterly Renegotiations

Understanding Our Rumor Ratings

0-20%: Unlikely – Lacks credible sources 21-40%: Questionable – Some concerns remain 41-60%: Plausible – Reasonable evidence 61-80%: Probable – Strong evidence 81-100%: Highly Likely – Multiple reliable sources

Rumor Assessment Current Rating: 60% Plausible

Source Rating: 4/5 Corroboration: 1/5 Technical Validation: 4/5 Timeline Assessment: 3/5

Potential Price Increase for the iPhone 18 Series

Despite Apple’s best efforts to maintain pricing for its upcoming iPhone 18 series, a price increase appears increasingly likely. One possible mitigation tactic could involve retaining the same base models as last year’s release. That said, a recent agreement with Kioxia, a NAND flash manufacturer, indicates that Apple may need to absorb higher costs, paying nearly double for storage, particularly impacting higher memory variants. It’s crucial to note that such pricing agreements are susceptible to fluctuations each quarter, leaving the possibility of further price shifts unexamined.

The iPhone 17 Series and Manufacturer Relations

Recent rumors on social media platforms, particularly from @jukan05, suggest that current NAND flash pricing is set for review, with potential volatility expected in the January to March quarter shifting into April to June. Apple’s resilience stems largely from its robust Services division, which significantly reduces financial strain during periods of declining hardware sales by generating billions in revenue.

Prominent analyst Ming-Chi Kuo from TF International Securities emphasizes that Apple might be strategically positioned to absorb rising costs amidst the marketplace upheaval. Kuo highlights the potential of the Services sector, which reported earnings of $30.013 billion in the record-breaking Q1 2026, to subsidize any necessary price increases for DRAM and NAND flash components across various products.

Apple agrees to pay Kioxia double for NAND flash

Supply Chain Challenges Amidst Market Crisis

Last year, Apple adeptly navigated the supply chain landscape for the iPhone 17 series by collaborating with up to five suppliers for DRAM and NAND flash components, including Kioxia. The ongoing market crisis, however, raises concerns that no supplier is fully insulated from price increases. Apple’s efforts to secure a stable supply of components reflect its commitment, but the current economic volatility necessitates quarterly contract renegotiations.

Encouragingly, recent developments indicate a possible opportunity for Apple, as Chinese memory manufacturers CXMT and YMTC have been de-listed from the Pentagon’s restrictions. This alteration could open avenues for future partnerships that may yield more favorable terms for Apple regarding its component supply.

For the latest insights, follow @jukan05

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