The ongoing shortage of DRAM and NAND memory, along with sharply rising prices, is beginning to impact the global consumer electronics market. Smartphones, being one of the most widely used devices, are expected to face noticeable price increases in 2026. This impact will be more severe in the mid-range and budget segments, where brands operate on thin margins. Even premium manufacturers like Apple are not completely insulated from these cost pressures.
However, Apple may be taking a different approach with its upcoming iPhone 17e. According to a report by Wccftech, the company has further optimized its supply chain, allowing it to secure lower procurement costs for key components such as the SoC and the 5G modem. These improvements in efficiency suggest that the iPhone 17e may not be affected by rising storage prices and could potentially launch at a lower price compared to expectations.
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To tightly control production costs, Apple is reportedly reusing several components from the iPhone 16e. The iPhone 17e is expected to feature the A19 chip along with Apple’s in-house C1 5G modem. By avoiding Qualcomm’s modem solutions, Apple is estimated to save around $10 per unit while also reducing long-term licensing expenses. This move not only helps in cost reduction but also strengthens Apple’s control over its hardware ecosystem.
Display choice is another area where Apple appears to be cutting costs strategically. The iPhone 17e is rumored to use an LTPS OLED panel supplied by BOE. Compared to LTPO OLED displays used in Apple’s premium models, LTPS panels are significantly cheaper. BOE’s OLED displays are also more cost-effective than similar offerings from Samsung and LG, further helping Apple keep manufacturing expenses in check.
Despite these cost optimizations, the overall smartphone market is expected to see price hikes due to higher memory costs in 2026. This makes the iPhone 17e an interesting outlier, as Apple’s supply chain strategy could allow it to maintain stable pricing or even offer a more affordable iPhone in a challenging market environment.
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The iPhone 17e is speculated to launch as early as February, and Apple may skip a dedicated launch event in favor of a low-key announcement through an official press release. If these reports turn out to be accurate, the iPhone 17e could appeal strongly to price-conscious consumers looking for a modern Apple smartphone without the premium pricing seen across much of the industry.
