Apple CEO Warns of Rising AI-Driven Memory Costs and Their Impact on Product Pricing
Tim Cook, Apple's outgoing CEO, described the current surge in memory prices as a '100-year flood,' driven largely by increased demand from AI data centers. During his final earnings call before transitioning to executive chairman, he confirmed that rising costs have already led to price increases on Macs and iPads and will likely affect iPhone sales this quarter due to supply constraints. Cook highlighted the impact of memory cost inflation, noting it has significantly reduced Apple's gross margins in recent quarters. The three major DRAM suppliers—SK Hynix, Samsung, and Micron—are reportedly selling out their premium AI memory capacity through 2026, with some accusing them of colluding to restrict supply. Analysts expect iPhone prices may rise when the new models launch this September. Despite these challenges, Apple's Q3 2026 financial results exceeded expectations, with revenue and earnings per share both outperforming forecasts.
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