DataAudio · 76:01 — 77:31
The AI-driven memory crunch is set to add roughly $100-250 to the retail cost of an iPhone, as DRAM per-gigabyte pricing roughly triples and NAND prices rise in tandem.
Dylan walks through the math showing how the AI memory crunch flows into consumer electronics: DRAM cost per gigabyte tripling turns a roughly $50 memory bill-of-materials into $150 for a 12GB iPhone, a cost increase Apple can only partly absorb. ✦ AI generated
Dylan Patel · Dwarkesh Podcast · 2026-03-13 · original ↗
plays this moment only · 76:01 — 77:31
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“If you look at the bill of materials for an iPhone, what fraction of it is the memory? How much more expensive does an iPhone get if the memory is two times more expensive?”
I believe an iPhone has 12 gigabytes of memory. Each gig used to cost roughly $3-4, so that's $50. But now the price of memory has tripled. Let's say it's $12 per gig for DDR. Now you're talking about $150 versus $50. That's a $100 increase in cost for Apple.
verbatim transcript · starts at 76:01
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76:01– The enormous incoming memory crunch
76:01– The enormous incoming memory crunch
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Data centers buying up nearly all available DRAM supply have given memory makers like Samsung, SK Hynix, and Micron real pricing power for the first time in years.Mario (Generalist Intelligence) · The Generalist · conf 60%Samsung is pushing for another DRAM price increase of up to 20% next quarter, following increases of about 90% in Q1 2026 and 50-60% in Q2.Mario (Generalist Intelligence) · The Generalist · conf 60%Three consecutive quarters of major DRAM price hikes are being driven by data centers buying up nearly all available memory supply.Mario (Generalist Intelligence) · The Generalist · conf 60%