Apple Faces Rising Memory Chip Costs; Tim Cook Says Company Is Evaluating Options
Apple Inc. (NASDAQ:AAPL) is dealing with rising memory chip costs that are expected to continue into the September quarter, according to outgoing CEO Tim Cook during a recent earnings call. Cook noted that Apple has already seen increasing expenses for memory chips in consecutive quarters and anticipates further price hikes ahead. While he did not confirm whether iPhone prices would rise as a result, he mentioned efforts to secure supply flexibility and manage costs through existing inventory. Cook also revealed that Apple had reluctantly raised prices on several products like the MacBook Air and iPad Pro due to what he described as an unprecedented surge in memory pricing. Despite these challenges, Apple reported strong Q3 earnings with revenue of $109.42 billion, exceeding expectations. However, shares fell sharply after hours following concerns over potential price increases. The company expects slower growth for the September quarter compared to recent periods and is monitoring how rising costs may impact its business beyond that timeframe.