John Ternus faces a rocky start to his tenure as Apple CEO, including massive RAM price hikes that will impact the iPhone’s fall launch. With continued pressure to manufacture in the United States, changes in the supply chain could be underway.
The arrival of John Ternus as Apple CEO in September will be a major event for Apple, but it will also involve some difficult early choices. Some will affect the future operation of Apple’s massive supply chain.
Right now, Apple is facing an industry-wide memory pricing problem, with the cost of RAM skyrocketing and affecting the price of electronics in general. So far, Apple has managed to protect itself from the problem through strategic contracts with its suppliers, but that won’t last forever.
According to executives, supply chain experts and analysts speaking to the Financial TimesTernus will have to make important decisions soon after the CEO transition. Some of these decisions may also be made before he accepts his position, requiring him to stay or change based on his plans for the company.
The issue of memory pricing is a major issue, with analysts estimating that hikes could significantly increase the cost of components. Currently, memory represents 10% of an iPhone’s nomenclature, but it is expected to reach 45% by the end of 2026.
RAM is under pressure due to the development of AI infrastructure, with companies shelling out billions to secure their production capacity in advance. A memory industry said that for Apple, it was no longer able to dictate terms due to its size, but was now one of many competitors seeking supplies.
A change from China
In addition to struggling to find suppliers in a difficult market, Ternus will also have to think about how Apple uses these components to make its products.
Tim Cook visits the Luxshare factory in 2017. Image credit: Apple
Apple quickly changed its supply chain, moving from a China-centric one to a more expansive supply chain. This involves a major supply chain development in India, which also wants to increase iPhone production.
Diversification poses many problems for Ternus, including the happiness of China. With India’s iPhone supply chain growing, China is concerned about a reduction in Apple’s investment, despite Tim Cook’s focus on the issue.
Ternus will not only have to satisfy China. The same must be true in the United States.
Trump interview
President Donald Trump has repeatedly called for increased manufacturing production in the United States and has made progress with Apple.
By 2025, this meant a commitment to invest $600 billion in the U.S. economy. In March 2026, this also included another 14-year plan to spend an additional $400 million on component production in the United States.
Apple’s AI factory in Houston will soon make the Mac mini – Image credit: Apple
Despite the investments, they didn’t really help Trump realize his wish to manufacture iPhones on American soil. However, it helps other products, like the Mac mini assembly plant revealed in February.
So far, the massive payments have not resulted in a significant shift of iPhone production to the United States. But it appears to have improved Trump’s mood on the subject.
All investment promises under Tim Cook’s reign will have to be kept by Ternus, or risk having to deal with the inevitable response from the Trump administration.
Cook has already done much to satisfy Trump and to avoid the worst of the tariff war so far. It is plausible that, in his new role as executive president, Cook will continue his peacemaking work.
Even so, Ternus will still have to strike a delicate balance to satisfy the United States and China, analysts say.