The AI boom is creating an unexpected casualty: the gadgets in your pocket and on your desk.
Apple is reportedly scaling back planned hardware shipments for 2026 as a global memory shortage squeezes component supplies, according to Apple analyst Ming-Chi Kuo. The shortage has already contributed to higher Mac and iPad prices, and Kuo’s latest reporting on Apple’s production plans suggests users could soon face tighter supplies as new iPhones approach.
The problem is bigger than Apple. Memory manufacturers are increasingly prioritizing lucrative chips for AI data centers, putting consumer electronics in competition with the infrastructure powering the generative AI boom. For Apple customers, the cost of that expansion may increasingly show up at the Apple Store.
Apple is reportedly planning around the memory shortage
Kuo’s comments came in response to a report claiming TSMC had approximately $1 billion worth of unfinished processors awaiting memory components Apple had been unable to secure.
Kuo disputed that scenario while agreeing that memory supply is constraining Apple.
According to his account, Apple plans processor production at least three months ahead based partly on expected memory availability. Rather than manufacturing huge quantities of processors it cannot use, Apple may be adjusting overall hardware production to match the components it expects to have.
For consumers, that distinction matters. Reduced production could mean fewer devices reaching stores, particularly during major product launches. Apple has not confirmed Kuo’s claims, however, and the exact size of any shipment reductions remains unclear.
AI data centers are competing with consumer devices for memory
AI infrastructure requires enormous quantities of memory, particularly high-bandwidth memory used alongside AI accelerators. Manufacturers have strong financial incentives to dedicate more production capacity to those products, leaving less available for the memory used in phones and PCs.
In its analysis of how the global memory shortage could affect smartphones and PCs, IDC described a broader restructuring of the memory market as hyperscalers such as Microsoft, Google, Meta, and Amazon drive demand.
The effects are already spreading through the smartphone industry.
IDC now forecasts worldwide smartphone shipments will fall 13.9% year over year in 2026 to 1.09 billion units. It also expects average selling prices to reach a record $550 as manufacturers respond to rising costs by cutting production, raising prices, and emphasizing premium devices.
Apple’s enormous supply chain gives it leverage, but not immunity.
Mac and iPad buyers are already paying more
Apple users don’t have to wait until the next iPhone launch to see the consequences.
The company raised prices across Macs, iPads, Apple TV, HomePod, and Vision Pro products in June, citing rising memory and storage costs.
According to a breakdown of Apple’s June price increases, the MacBook Air’s starting price climbed from $1,099 to $1,299, while the MacBook Pro increased from $1,699 to $1,999. The entry-level iPad rose from $349 to $449, and the iPad Pro jumped from $999 to $1,199.
Apple CEO Tim Cook had previously warned that the company could no longer absorb all of the higher component costs. When Apple explained why it was raising hardware prices, the company said it needed to “begin” increasing prices on some products while searching for solutions to the shortage.
So far, the iPhone has largely escaped those increases.
September could test whether that continues.
The iPhone 18 launch could reveal how serious the shortage is
The latest report on Apple’s planned shipment cuts indicates the upcoming iPhone 18 Pro, iPhone 18 Pro Max, and Apple’s expected foldable iPhone could face limited availability because of memory constraints. MacRumors expects those models could sell out during preorders, although Apple has not confirmed supply levels.
Pricing is another uncertainty. Apple has already passed higher component costs to Mac and iPad buyers, making the next iPhone launch worth watching closely. But Apple has not announced pricing, and the memory shortage does not guarantee an iPhone price increase.
For buyers determined to get a specific premium model, storage capacity, or color at launch, tighter supplies could make preordering early more important than usual.
Everyone else has more room to wait.
What Apple users should do
Prospective iPhone buyers shouldn’t panic-buy an existing model solely because of Kuo’s report.
Apple hasn’t confirmed next-generation pricing or shortages. The reporting is better viewed as an early warning that supply could be tighter than usual. Buyers who don’t need the latest model can also compare older devices, trade-in offers, carrier promotions, and refurbished products if new hardware becomes more expensive.
Apple may also be better positioned than some competitors. IDC’s latest smartphone market data showed Apple’s shipments increased 4.4% year over year in the first quarter of 2026 even as the overall market declined 2.9%.
That doesn’t mean Apple users will escape the memory crisis. It means Apple may have more tools to manage it.
The AI boom is reaching the Apple Store
The AI race is usually discussed in terms of smarter software, faster models, and massive data centers. The memory shortage exposes another consequence. Those data centers are competing for physical components also needed to build everyday electronics.
For Apple users, that competition can eventually become a more expensive MacBook, a pricier iPad, or an iPhone configuration that’s harder to find on launch day.
September’s iPhone launch may provide the clearest indication yet of whether those pressures are becoming the new normal or another supply-chain problem Apple can eventually outrun.
Related reading: With hardware costs under pressure, Apple buyers weighing their next upgrade can also explore how Apple’s new leasing program changes the cost of getting an iPhone, Mac, or iPad.
