Supply chain decisions loom for Ternus in September
Supply chain decisions loom for Ternus in September
Publish Date: 2026-04-29 08:22:00
Source Domain: appleinsider.com
John Ternus faces a turbulent start to his tenure as Apple CEO, including massive RAM pricing spikes that will impact the fall iPhone launch. With continued pressure to manufacture in the U.S, supply chain changes could be on the way.
The arrival of John Ternus as Apple CEO in September will be a big event for Apple, but it will also include some tough early choices. Some that will affect how Apple’s massive supply chain operates in the future.
At present, Apple is dealing with the industry-wide problem of memory pricing, with RAM skyrocketing in cost and affecting the price of electronics in general. So far, Apple has managed to insulate itself from the problem through strategic contracts with suppliers, but it won’t last forever.
According to executives, supply chain experts, and analysts speaking to the Financial Times, Ternus will have some major decisions shortly after the CEO transition. Some of those decisions may also be made before he takes the role, forcing him to maintain or change depending on his plans for the company.
The memory pricing issue is a massive problem, with analysts believing the surges could raise the component cost significantly. Currently, memory accounts for a 10 percent share in the bill of materials for an iPhone, but that is expected to be 45 percent by the end of 2026.
RAM is under pressure because of AI infrastructure buildouts, with firms paying billions to secure production capacity in advance. A memory industry said that for Apple, it’s gone from being able to dictate terms due to its size, to being one of a number of rivals seeking supplies.
A shift from China
Aside from fighting for suppliers in a tough market, Ternus will also have to consider where Apple uses those components to build its products.
Tim Cook visits Luxshare factory in 2017. Image Credit: Apple
Apple has been quickly shifting its supply chain from a China-centric one to a more spread-out operation. This has included a major…
