Apple Cuts Hardware Shipments Amid Global DRAM Shortage

Apple Inc. has reduced its 2026 hardware shipment plans following a continuing shortage of LPDDR5X DRAM. The supply crunch is driven by memory manufacturers diverting production capacity toward more profitable AI data center contracts, which has already caused delivery delays for the MacBook Air and price increases for Mac and iPad lineups.

Reports indicate that Taiwan Semiconductor Manufacturing Company is holding approximately $1 billion in finished A20 Pro wafers for Apple that cannot be packaged due to the memory shortage. This bottleneck is attributed to Apple's use of the Wafer-Level Multi-Chip Module (WMCM) process, which integrates processors and memory at the wafer level and prevents the company from stockpiling logic dies for later assembly. While the launch of the iPhone 18 Pro is not expected to be delayed, analysts warn of thin retail inventory and extended delivery estimates for the iPhone 18 Pro, Pro Max, and a foldable iPhone Ultra.

Analyst Ming-Chi Kuo has disputed the $1 billion backlog claim, stating that Apple coordinates production with Taiwan Semiconductor Manufacturing Company three months in advance to avoid excess inventory. Kuo argues that the manufacturer's increased inventory days result from a general 2nm production ramp for multiple clients, including AMD and MediaTek. To address the shortage, Apple is negotiating with Micron, SK Hynix, and Samsung after reportedly failing to secure a deal with Chinese maker CXMT.