Apple customers could soon pay more for their favorite devices as the company faces soaring costs for memory and storage chips.
The tech giant’s CEO, Tim Cook, said The Wall Street Journal that Apple has tried to absorb the increases but can no longer fully protect customers from higher prices. Cook did not say when prices would increase or which products would be affected.
“Unfortunately, price increases are inevitable,” Cook told the outlet. “We are doing our best to mitigate the huge increases imposed on us, and we have tried to protect our customers increases, but the situation has become untenable. »
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Apple’s next major product launch is expected in September, when the company will likely unveil its iPhone 18 lineup. (Kyle Grillot/Bloomberg via Getty Images / Getty Images)
Apple’s next A major product launch is expected in September, when the company will likely unveil its iPhone 18 lineup.
Remarks come like artificial intelligence (AI), companies are buying huge amounts of memory and storage chips, according to the Wall Street Journal.
Research firm TechInsights estimates that Apple would need to add about $270 to the next iPhone Pro model to maintain profit margins, the outlet reported.
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Apple CEO Tim Cook said the company can no longer fully protect its customers from higher prices. (David Paul Morris/Bloomberg via Getty Images / Getty Images)
Cook said DRAM chips are a major concern as more of them are now used for AI servers.
“There is less supply at a time when consumers I want devices and memory makers are passing on huge price increases,” Cook told the Wall Street Journal. “We absolutely need memory prices and supply to return to reasonable levels for consumer products. That’s the main thing.”
Teleprinter Security Last Change Change % AAPL APPLE INC. 295.95 -3.29 -1.10% Apple could use its cash reserves to help increase chip supply, Cook said, but the the company does does not plan to build its own memory factories.
“This is a 100-year flood,” Cook said. “I have never seen anything like this in any area in over 40 years.”
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The remarks come as artificial intelligence companies purchase huge quantities of memory and storage chips. (Kevin Carter/Getty Images / Getty Images)
Apple announced earlier this year that Cook would step down on September 1 after 15 years as chief executive.
He will become executive chairman of the company’s board of directors and will be replaced by longtime Apple veteran John Ternus, the company’s senior vice president of hardware engineering.
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FOX Business could not immediately reach Apple for comment.
Bonny Chu of FOX Business contributed to this report.
