Apple To Raise Prices Due To Memory Chip Shortage, CEO Cook Tells WSJ

Apple is gearing up to increase prices on its products in response to rising memory and storage chip costs, according to CEO Tim Cook in an interview with the Wall Street Journal. The surge in demand for data centers driven by artificial intelligence has led to fierce competition among consumer electronics companies for these components, resulting in significant price hikes. Various industry groups had previously warned of potential price increases in U.S. consumer goods due to the growing demand for memory chips.

Cook acknowledged that price hikes are inevitable and stated that Apple is working to mitigate the impact on customers. However, he emphasized that the current situation is unsustainable. While he did not specify when or by how much prices would increase, Cook mentioned that the company is facing significant cost increases that are being passed on to them.

Apple is reportedly set to launch its first foldable iPhone in September, along with the iPhone 18 Pro and Pro Max. Cook highlighted concerns about memory and storage costs, particularly in the DRAM market, where supply is being allocated to high-bandwidth memory for AI servers. He expressed the need for memory pricing and supply to return to reasonable levels for consumer products.

When asked about working with leading domestic memory and storage companies in China, Cook suggested that restrictions should be reconsidered under national-security rules. He mentioned that Apple is willing to leverage its cash reserves to boost memory supply and address the capacity issue. However, he clarified that the company has no plans to build its own memory and storage factories.

Overall, Apple is facing challenges related to rising chip costs, but Cook seems determined to navigate these obstacles and ensure a sustainable supply chain for the company’s products.

(Source: Reuters)