Apple CEO Tim Cook has stated that the company can no longer absorb the steep rise in memory chip prices, which could lead to increased costs for consumers and exacerbate inflation concerns in the tech sector.
Cook noted in an interview with The Wall Street Journal that the escalating costs make price increases "inevitable." This means consumers will likely soon pay more for Apple devices.
This warning comes amid a sharp increase in demand for memory chips as AI infrastructures and data centers rapidly expand. Memory components are vital for both AI systems and consumer electronics, including smartphones, laptops, and tablets.
Morgan Stanley estimates that memory chip prices have increased more than sixfold over the past year, as manufacturers struggle to meet demand.
Cook's statements could also signal broader pricing pressure across the entire tech industry. He said the company is "doing everything we can to mitigate the tremendous price increases," but the situation has become "unstable."
The Wall Street Journal reports that the AI boom has transformed the memory chip market, forcing Apple to compete directly with major AI companies and data center operators for supplies. As a result, the company has fewer opportunities to secure lower prices from manufacturers.
