Apple CEO Tim Cook Warns Memory Chip Shortage Will Persist
Tim Cook, outgoing Apple CEO, described a severe memory chip shortage as a '100-year flood,' noting that the situation is unlikely to improve soon. This has led Apple to increase product and subscription prices globally by $150 to $300 across its Mac, iPad, Vision Pro lines, and services like Apple Music and Apple One. The memory chip shortage stems from surging demand for high-bandwidth memory (HBM) and advanced DRAM used in AI servers. Major suppliers such as SK Hynix, Samsung Electronics, and Micron have sold out of premium capacity through 2026 to meet the needs of companies like Nvidia, Microsoft, Amazon, and Meta building AI infrastructure. Apple's cautious guidance for its fiscal fourth quarter fell short of expectations despite a strong third-quarter performance. The company reported revenue of $109.4 billion with iPhone sales exceeding forecasts but services falling slightly below projections.
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Topics: AI infrastructure Apple memory chip shortage pricing strategy Tim Cook