Tim Cook Says Apple Reluctantly Raised Prices Due to Soaring Memory Costs
Apple CEO Tim Cook stated that the company was forced to increase iPhone prices by $200 to $500 due to a significant rise in memory costs, which he described as a '100-year flood.' This price adjustment is seen as an effort to maintain profit margins amid rising component expenses. The upcoming product event on September 9, 2026, will focus heavily on Apple's strategy of pushing higher-priced devices like the rumored foldable iPhone Ultra, expected to start at $2,400 and potentially generate up to $14 billion in revenue for the December quarter according to Morgan Stanley. However, limited production could pose a challenge. Apple’s financial performance remains strong with recent quarterly revenues reaching $109.4 billion and a gross margin of 50.1%. Despite this, Apple did not make it onto a list of top stocks to buy by analysts at 24/7 Wall St., raising questions about its current investment appeal compared to other market options.
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