It’s been called RAMageddon : AI’s insatiable demand for hardware has caused a worldwide shortage of memory chips. Now outgoing Apple CEO Tim Cook is warning its customers that your next Mac, iPhone, or iPad could be more expensive thanks to surging memory and storage chips costs.
In a recent interview, Cook told the WSJ that price increases are “unavoidable,” in spite of efforts to absorb chip costs that have increased fourfold since last year. He described the situation as “unsustainable.”
Cook didn’t name which products will be affected or when prices will rise, but he’s raised the alarm about the impacts of RAMageddon before. In April, after delivering record quarterly sales, he said that these higher costs could impact Apple’s next business results. Incoming CEO John Ternus also warned about the issue that same month .
If Apple raises prices, the iPhone seems almost certain to be impacted, memory supply experts told the Financial Times. The company is expected to launch its next iPhone in September, which gives it the opportunity to announce increased prices. Of course, Apple sells many other devices that contain memory (DRAM) and storage (NAND) chips, including the Apple Watch, Mac, iPad, and Apple Vision Pro.
It’s not clear how much more expensive any of these products will be, although research firm TechInsights gave the WSJ its estimate. It said Apple would need to add another $270 to the next iPhone Pro to keep its profit margin intact. The iPhone 17 Pro starts at $1,099.
So far AI has not been a particular boon to Apple. The company is already under pressure to figure out its AI strategy for its devices. It even paid a $250 million settlement earlier this year to end a false advertising lawsuit filed after it failed to deliver the AI features it promised two years ago.
The company’s Worldwide Developers conference held earlier this month showed progress on fulfilling those previous AI promises , including an overhaul of Siri. Of course, more on-device processing could mean more need for memory — a trajectory that seems destined to end with consumers paying more for Apple products.
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Kirsten Korosec is a reporter and editor who has covered the future of transportation from EVs and autonomous vehicles to urban air mobility and in-car tech for more than a decade. She is currently the transportation editor at TechCrunch and co-host of TechCrunch’s Equity podcast. She is also co-founder and co-host of the podcast, “The Autonocast.” She previously wrote for Fortune, The Verge, Bloomberg, MIT Technology Review and CBS Interactive.
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Read the full article at TechCrunch →📄Source document: Interview with Tim Cook→4 reports
The HillIndependentCenter2 days agoApple CEO Tim Cook stated in an interview with The Wall Street Journal that the company is increasing product prices due to rising costs of memory and storage chips.
Bias read (Center): The article reports a straightforward statement from Apple's CEO regarding pricing adjustments due to supply chain costs. There is no evident framing bias, loaded language, or selective sourcing. The content remains factual and neutral in tone.
QuartzIndependentCenter3 days agoApple's CEO Tim Cook stated that the company will increase product prices due to a tightening memory chip shortage, driven by increased demand for AI technology.
Bias read (Center): The article presents a straightforward statement from Tim Cook regarding pricing decisions influenced by supply chain constraints. There is no evident framing bias, loaded language, or selective sourcing. The content remains factual and neutral in tone.
TechCrunchParty-alignedCenter3 days agoApple CEO Tim Cook has warned that rising costs of memory and storage chips due to high demand for AI technology could lead to unavoidable price increases for upcoming products such as the iPhone, Mac, iPad, and others. These cost increases have surged fourfold since last year, according to Cook, who described the situation as 'unsustainable.' Experts suggest the iPhone is likely to see price hikes, with the next model expected to launch in September. The impact of these rising costs on Apple's future business results has already been acknowledged by both outgoing CEO Tim Cook and incoming CEO
Bias read (Center): The article presents information from multiple sources, including quotes from Apple's CEO, industry experts, and a research firm. It does not exhibit overtly biased language, one-sided sourcing, or editorializing. The content focuses on economic factors affecting product pricing without taking a立场.
Official sources cited
- organisation Tim Cook (Apple CEO)
- organisation John Ternus (Incoming Apple CEO)
- organisation TechInsights
MarketWatchParty-alignedCenter3 days agoApple CEO Tim Cook stated that rising component costs driven by increased demand for memory chips in AI servers will lead to higher product prices for consumers.
Bias read (Center): The article presents a factual statement from Apple's CEO regarding pricing pressures without overtly favoring any political perspective. The focus is on economic factors affecting pricing rather than political ideology.
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