Apple Raises Mac and iPad Prices by 20% Amid Memory Shortage
Apple has increased the prices of its Macs and iPads by 20%, with CEO Tim Cook attributing this to a severe shortage in memory chips driven by AI demand. The rising costs are being passed on to consumers, signaling potential price hikes for iPhones as well. Micron Technology (NASDAQ:MU), Apple's primary U.S.-based DRAM supplier, has significantly benefited from the situation. Micron’s stock surged 666% over twelve months and now trades near $940 per share, with gross margins expanding to 85%. The company signed long-term take-or-pay contracts worth approximately $100 billion in revenue commitments. Micron's CEO expects memory supply constraints to persist beyond 2027 due to structural demand from AI applications. In contrast, Apple’s stock has underperformed year-to-date and declined over the past month as it absorbs rising component costs.
Topics: AI demand memory shortage price increases semiconductors