Apple has warned that it plans to raise prices due to a shortage of memory chips
The company has already raised the starting price of Mac Mini computers this year
Apple plans to raise prices on its devices due to the sharp rise in the cost of memory chips, the company's CEO, Tim Cook, said in an interview with The Wall Street Journal.
“Unfortunately, price increases are inevitable. We’re doing everything we can to cope with the massive increase [in memory chip prices] that’s being passed on to us, and we’re trying to protect our customers, but it’s impossible to sustain this situation any longer,” Cook said. He declined to disclose the timing and extent of the price increases, as well as the specific products they will affect. Apple’s next major launch is expected in September with the release of the iPhone 18 lineup, which is rumored to include a foldable iPhone, according to the WSJ. However, prices for Macs and iPads may rise even sooner, the newspaper notes. The company has already raised the starting price of Mac Mini computers this year.
According to estimates by the research firm TechInsights, Apple will have to add about $270 to the price of the next iPhone Pro model in order to maintain its current profit margins. Cook called the situation a “once-in-a-century flood.” He claims that in more than 40 years of work, he has never encountered anything like this in any industry.
Context
The cost of memory and storage chips has risen sharply due to surging demand from AI server manufacturers. Since last year, when Google, Microsoft, Meta, and Amazon announced a sharp increase in capital expenditures, prices for dynamic random-access memory (DRAM) and flash memory (NAND) chips have quadrupled, according to the WSJ. Manufacturers are redirecting production capacity to this booming market, cutting back on supplies for consumer electronics.
Morgan Stanley expects production capacity for DRAM silicon wafers to grow by 30% by 2027. However, the bank’s analysts warn that, due to the priority given to AI orders, chip shipments for consumer devices could fall 15% short of demand. According to their forecast, prices for smartphones and personal computers in the U.S. will rise by an average of 15% this year.
Cook stated that Apple is prepared to draw on its own financial reserves to increase supply in the market. However, he ruled out building its own memory chip factories.
This article was AI-translated and verified by a human editor
