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Apple Says Hardware Price Increases Are Unavoidable

The company cites soaring DRAM and NAND costs driven by large-scale AI data-center demand as the reason those costs can no longer be absorbed.

Overview

  • Apple CEO Tim Cook told the Wall Street Journal that price increases for iPhones, Macs and other devices are unavoidable because memory-chip costs have become too large to fully absorb.
  • The warning published on June 18 follows industry reporting that contract prices for DRAM and NAND have spiked sharply as data centers built for AI buy high-performance memory at scale.
  • An independent TechInsights model shared with the Wall Street Journal estimates Apple would need roughly $270 extra on a next-generation iPhone Pro to preserve its historical gross margin, though Apple gave no product-specific figures or timing.
  • Several other device makers including HP, Dell, Nintendo, Sony and Valve have already raised or planned price increases, showing the problem is industry wide rather than limited to Apple.
  • Apple says it is reviewing all supply options, including possible sourcing from Chinese memory producers, while chipmakers expand capacity slowly and may prioritize memory for AI servers over consumer parts.