Apple may raise device prices as memory chip costs surge
Apple CEO Tim Cook said rising memory and storage chip prices, driven by AI demand, are forcing the company to consider price increases for its products.
Apple is facing higher costs for memory and storage chips, which the company says could lead to price hikes for its devices. CEO Tim Cook told The Wall Street Journal that Apple has tried to absorb the increases but can no longer fully protect customers from higher prices.
"Unfortunately, price increases are unavoidable," Cook said. "We're doing our best to mitigate the huge increases that are being passed to us, and we've been trying to shield our customers from the increases, but the situation has become unsustainable."
Cook attributed the pressure to growing demand for AI servers, which are buying large volumes of DRAM chips and reducing supply for consumer products. He warned that memory pricing needs to return to reasonable levels for devices such as smartphones.
Research firm TechInsights estimates Apple might need to add about $270 to the next iPhone Pro model to preserve profit margins. The company may use cash reserves to expand chip supply but does not plan to build its own memory factories. Apple is expected to unveil its next iPhone lineup in September, and Cook will step down as CEO on Sept. 1, transitioning to executive chairman.
