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iPhone 7 Puts RAM Pricing into Play

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Larger iPhone to come with 3 GB of RAM

As we discussed in Part 1 of this series, Apple (AAPL) is expected to launch the iPhone 7 during its annual event showcase on September 7, 2016. While the larger 5.5-inch model is expected to be launched with 3 GB (gigabytes) of RAM (random access memory), the smaller iPhone is likely to continue with 2 GB of RAM.

In terms of capacity, the iPhone 7 will start at 32 GB of storage to a maximum of 256 GB, according to AppleInsider.

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DRAM prices rise on iPhone orders

According to AppleInsider, “Global DRAM prices are continuing to climb on the strength of orders for the iPhone 7 and demands from competitive China-based manufacturers, causing a ripple effect across the entire computing industry.”

A DRAMeXchange report on the movement of DRAM prices stated that prices have been trending upward since July 2016. Earlier this month, Hewlett-Packard (HPQ) stated that the industry could see a possible shortage of memory products due to suppliers’ focus on smartphones.

Several media reports stated that Apple might provide 32-GB (gigabyte) memory in the higher-end versions of iPhone 7 and iPhone 7 Plus. HP’s comment about the memory supply shortage supports reports that iPhone 7 would have more memory content than its predecessors.

This shift in focus toward smartphones is largely due to Samsung and Apple, which together command a 34% share of the smartphone market. However, this is a seasonal demand and will fade away after iPhone 7 production slows. If the iPhone 7 suffers the same fate of iPhone 6s and 6s Plus, memory sales may fall in the first half of 2017.

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