■ iPhone 18 to feature 12GB DRAM to support Siri AI with price unchanged
ㅡ During WWDC, Apple unveiled its Siri AI strategy. On-device AI functions require at least 12GB of memory. The 1bn existing iPhones may struggle to fully support Siri AI as they have only 8GB of memory. To accelerate Siri AI adoption and stimulate replacement demand, Apple is likely to equip all iPhone 18 variants coming in 2H26E--from base to high-end models--with 12GB DRAM, while keeping the price unchanged. This suggests a strategic focus on expanding its AI ecosystem and market share rather than near-term profitability.
■ 2026-27 strategy focusing on iPhone shipments: Rise from 240mn in 2025 to 270mn in 2027
ㅡ Starting in 2026, Apple's iPhone strategy should prioritize increasing shipments over maximizing profit as Apple is using its cash reserves to purchase mobile DRAM at a premium from Samsung Electronics (SEC), SK hynix (SKH) and Micron. By gaining a DRAM supply chain advantage, Apple should be able to maintain competitive prices, while expanding its product lineup. As a result, global iPhone shipments are expected to rise from 240mn units in 2025 to 250mn in 2026 and 270mn in 2027. This should lead to not just new model effects, but to structural market share expansions driven by the AI adoption and price freezes.
■ iPhone celebrating 20th anniversary in 2027; Top picks: SEC, SKH, LGI
ㅡ Through 2027, Apple’s strategic shift should materialize in three ways: Apple should (1) expand its AI agent ecosystem by increasing shipments to broaden the Siri AI user base, (2) offer more choices by expanding its model lineup to more than six models, ranging from budget to foldable, and (3) aggressively increase its market share by minimizing price hikes. With LPDDR5X increasingly adopted in AI servers, mobile device makers are likely to face tougher competition in securing chip supplies. As such, Apple is expected to leverage its deep pockets and purchasing power to preemptively secure mobile DRAM supplies. With the iPhone’s 20th anniversary approaching in 2027, Apple is likely to focus on significant hardware upgrades, while aggressively seeking to increase its market share via lineup expansions and price freezes. We believe this “all-kill” strategy should drive earnings growth for iPhone parts vendors starting in 2Q26. We expect the prime beneficiaries to be SEC, SKH and LG Innotek (LGI).