Rising hardware costs and supply chain volatility are pushing enterprise technology leaders to rethink device refresh cycles. For organizations managing large fleets of smartphones, the calculus has shifted: buying used iPhones now delivers better total cost of ownership than ever before, according to a recent WIRED analysis.
Memory Shortage Drives Apple Price Hikes
Outgoing Apple CEO Tim Cook told The Wall Street Journal that price increases for Apple products would soon be “unavoidable.” The culprit, Cook explained, is an ongoing memory shortage—a supply chain-wide scarcity of storage and memory components driven by overwhelming demand for AI data centers. This shortage is compounded by last year’s tariff implementation under the Trump administration and the ongoing conflict with Iran. Apple must pass these rising costs to customers.
| Cost Driver | Impact on Apple |
|---|---|
| Memory shortage | Increases component costs for new devices |
| Tariffs | Raises manufacturing and import expenses |
| AI data center demand | Diverts memory supply away from consumer devices |
Kyle Wiens, CEO of repair advocate iFixit, told WIRED: “Buying used has never made more sense. The phones from the last few years are really good.”
iOS 27 Extends Life of Older Models
At Apple’s WWDC keynote in early June, the company detailed iOS 27 improvements that help older iPhones last longer. The update enhances the CPU scheduler, which manages software resources, in a way that will reportedly keep even the iPhone 11 running smoothly. This means enterprises can buy a used iPhone with confidence that it will receive continued software support.
Cost Comparison: New vs. Used iPhone
Maintaining an older iPhone is cheaper. Apple charges $119 to replace the battery on a iPhone 17; an iPhone 13 battery swap costs $30 less—i.e., $89. Wiens noted: “You can save a lot of money buying a year-old phone and putting a new battery in it every six months.”
| Model | Battery Replacement Cost | Savings vs. New |
|---|---|---|
| iPhone 17 (new) | $119 | — |
| iPhone 13 (used) | $89 | $30 per replacement |
Jitesh Ubrani, a research manager at IDC, wrote to WIRED that Apple has mostly absorbed extra costs so far, even releasing the MacBook Neo—its cheapest MacBook ever at $599—in March. He does not see Apple “squandering” goodwill by raising prices broadly. Instead, price hikes will likely hit premium Pro models. For enterprises that can compromise on the latest camera and AI features, used models are the smarter buy.
Enterprise Implications
For CTOs and procurement leaders, the message is clear: allocating budget to used iPhone fleets can reduce hardware spend while maintaining performance and security through extended software support. The memory shortage and tariff environment suggest new devices will only become pricier, reinforcing the value of stretching device lifecycles.
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