SK Hynix, Apple’s key memory supplier, warned that shortages of RAM and flash memory could continue until at least 2030. That could raise Apple’s component procurement costs and potentially affect product prices.

On Oct. 28, IT outlet 9to5Mac reported that Apple is known as one of 14 major technology companies that secured priority memory supply. But priority supply agreements do not prevent price increases driven by market supply and demand.

SK Hynix said memory demand keeps rising due to the growth of the artificial intelligence industry, but it is difficult to increase supply in the short term. If shortages persist, memory prices could stay high and push up cost burdens for electronic products that use the chips.

Apple has typically held an advantageous position in price talks with component suppliers thanks to strong purchasing power. But in the memory and flash storage markets, its bargaining power could be limited by supply shortages. That is because it may have to accept the possibility of significant price increases to secure stable volumes.

The Register reported that SK Hynix has long-term contracts with 14 large technology companies and guarantees priority orders. The contracts allow price adjustments based on market conditions. That means Apple may find it difficult to avoid higher costs from rising memory prices even if it is included in the priority supply group.

Beyond memory, printed circuit boards may also face supply constraints. Nikkei Asia reported that manufacturing has become more complex as technological advances increase the number of PCB layers and require higher bandwidth. It said supplier options are shrinking and delivery lead times are also getting longer.

Apple said in June it is working to reduce the impact of rising component prices, but it has yet to ease the problem, it was reported. If supply constraints persist for key parts such as memory, storage devices and PCBs, Apple’s cost burden could rise. That could translate into pressure to raise product prices in the future.