Apple to Raise Prices Due to Memory Chip Crunch, Tim Cook Says
Cook said Apple is trying to shield customers as DRAM and storage costs climb and supply shifts toward high-bandwidth memory for AI servers.
- Apple CEO Tim Cook confirmed on Wednesday that product prices will rise due to ongoing memory and storage supply constraints, though he did not specify which devices face hikes.
- Surging AI-driven demand for data centers has squeezed the market, forcing consumer electronics companies into fierce competition for dwindling memory supplies. Groups representing electronics firms warned earlier this month that chip shortages could disrupt supply chains.
- "Unfortunately, price increases are unavoidable," Cook told The Wall Street Journal, noting that while Apple has tried to shield customers, the current DRAM situation has become unsustainable.
- Preparing to hand over the CEO role to John Ternus in September, Cook indicated Apple may use its cash reserves to boost memory supply without building its own factories.
- Recent adjustments to the Mac Mini that dropped base storage options precede broader potential price hikes for future hardware releases. Macs and iPads could see increases sooner than the iPhone 18 launch in September.
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25 Articles
The rapid expansion of data centers for artificial intelligence makes memory chips dramatically more expensive. Apple managed to keep prices largely stable for quite a long time - but this is now over.
Tim Cook warns Apple may raise prices as memory costs surge
Apple CEO Tim Cook warned of price hikes due to a global memory chip shortage.Bloomberg/Getty ImagesApple's Tim Cook warned of price hikes due to a global memory chip shortage, which is spiking costs.Rising demand for memory chips for AI models is squeezing supplies for everyday gadgets like phones.MacBook prices rose earlier this year, and more increases are expected as memory costs climb.If you've been eyeing a new iPhone, MacBook, or iPad, wa…
"We are doing our best to mitigate the huge increases that are being passed on to us, and we have tried to protect our customers from these increases, but the situation has become untenable," said Apple's director.
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