Tim Cook says Apple can no longer absorb the surge in memory chip costs linked to the AI boom, heralding price increases for consumers and raising fears of higher inflation in the tech sector.
Apple's outgoing CEO, Tim Cook, has announced that Apple will raise prices on some of its products because the sharp rise in memory chip costs, driven by the AI boom, is becoming increasingly hard to absorb.
In an interview with the Wall Street Journal published Wednesday, Cook explained that the cost increase makes price hikes 'inevitable,' hinting that consumers may soon pay more for Apple devices.
The warning comes as demand for memory chips has exploded alongside the rapid expansion of AI infrastructure and data centers. Memory components are essential for both AI systems and consumer electronics, including smartphones, laptops, and tablets.
According to a recent estimate by Morgan Stanley, memory chip prices have increased more than sixfold over the past twelve months, as manufacturers struggle to keep up with demand.
Cook's statements could indicate broader pricing pressures across the tech sector.
The investment bank calculates that if manufacturers fully passed on the memory cost increase to list prices, average selling prices would need to rise by about 34% for smartphones, 67% for personal computers, 83% for servers, and 14% for storage products. These figures show the magnitude of cost pressures tech companies face, rather than predictions of actual retail price increases.
'We are doing everything we can to mitigate the sharp price increases being passed on to us and have tried to protect our customers from these increases, but the situation has become unsustainable,' Cook told the newspaper.
A settembre Cook lascerà il posto a John Ternus, dopo 15 anni alla guida di Apple.
In September, Cook will hand over to John Ternus after 15 years at the helm of Apple.
According to the Wall Street Journal, the AI boom has transformed the memory chip market, forcing Apple to compete directly for supplies with major AI groups and data center operators. As a result, the company has less room to negotiate lower prices with chip makers.
Apple has not specified which products could become more expensive or how large the increases might be.
Any price increases could affect Apple's main consumer products, including the iPhone, Mac computers, and iPad, although the company has not indicated whether specific devices will be impacted.
The Wall Street Journal cites estimates from research firm TechInsights, according to which the memory and storage components of the iPhone 18 Pro could cost Apple about $196, compared to about $52 for the iPhone 17 Pro. The difference reflects the sharp rise in prices of DRAM chips, used for short-term memory, and NAND flash chips, used for permanent data storage.
Apple's next major product launch is expected in September, when the company is likely to unveil the new iPhone 18 lineup.
