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Apple to increase prices due to memory chip shortage
Apple CEO Tim Cook revealed that the company intends to raise product prices because declining memory and storage chip costs are still weighing on it. Memory chip availability has been squeezed and prices have increased across the industry due to rising uptake of AI data centres. According to Cook, Apple has attempted to eat the added costs but deemed it "inevitable" that prices will have to be raised. While also seeking out methods to aid supply growth, the company has not yet disclosed when the increases would be effective and would products it would cover.
Apple to raise prices on its products, due to rising memory and storage chip costs. The company's expenses, says CEO Tim Cook In An Interview With the Wall Street Journal
Cook insists that demand for AI data centres is driving the global memory chip supply shortage, with such strong competition for resources to maintain quality.
Rising Memory Chip Prices Due To The Shortage
According to Cook, Apple has been doing its best to absorb increasing costs in order to reduce price increases for customers, but at this stage it is no longer possible.
As a result, Cook explained to the publication, We can't avoid price increases. He also said the company was working to mitigate the impact of higher costs but can no longer completely shield customers from them.
Earlier, industry groups for automakers, retailers and electronics firms had warned that increasing memory demand could drive up prices of consumer products and disrupt supply chains.
Apple has not yet disclosed when the time frame
Cook didn't say when or how far prices would go up, or which Apple models would be hit.
Both memory and storage costs are putting the company under pressure. As Cook explained, higher chip supply went to high-bandwidth memory in the AI servers after that, so fewer consumer electronic devices and some of its components.
Apple will debut their first foldable iPhone in September with the release of the iPhone 18 Pro and Pro Max.
Company Investigating Options to Boost Supply
Cook said Apple is willing and able to use its cash hoard to help expand memory supply, without going into specifics about how that would work.
He added that all supply options must be on the table, including whether existing limits on engaging with Chinese memory and storage firms are reviewed. But also said Apple is not going to invest in building its own chip manufacturing plants for memory or storage.
Source: Reuters
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