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Apple's Tim Cook Says Price Increases Are 'Unavoidable'

RAMageddon strikes again: Cook told The Wall Street Journal that rising memory prices have made current prices "unsustainable."

CNET 1 min read 6/10 Cupertino
Apple's Tim Cook Says Price Increases Are 'Unavoidable'
Key Takeaways
  • Tim Cook told The Wall Street Journal that rising memory prices make current Apple prices 'unsustainable,' marking the first direct confirmation of imminent hikes.
  • Global DRAM prices surged over 40% in Q1 2025 versus the prior year, according to TrendForce, with NAND flash up 30%, pressuring Apple's hardware margins.
  • Apple's iPhone 16 Pro models already started at $999 in 2024; an increase of $50–$100 per device is widely expected for the next generation.
  • Memory chip makers Samsung, SK Hynix, and Micron have all reported record profits as AI expansion diverts fab capacity from consumer electronics.
  • Apple last raised baseline iPhone prices substantially in 2023 with the iPhone 15 Pro Max starting at $1,199; further hikes could push flagship models above $1,300.
  • The price increases will likely affect all Apple product lines, including iPads and Macs, which also rely on high-cost DRAM and solid-state storage.
  • Analysts estimate that memory components account for 10–15% of the bill of materials in a high-end iPhone, making Apple especially vulnerable to market fluctuations.
Apple CEO Tim Cook has warned that price increases across the company's product lineup are 'unavoidable,' citing soaring memory chip costs. In an interview with The Wall Street Journal, Cook described current pricing levels as 'unsustainable,' signaling that consumers should prepare for higher iPhone, iPad, and Mac price tags in the coming months. The admission comes amid a global resurgence in DRAM and NAND flash prices, driven by supply constraints and surging demand from AI data centers.

"Current pricing levels are 'unsustainable.' — Tim Cook, Apple CEO, to The Wall Street Journal."

Frequently Asked Questions

Yes, Apple CEO Tim Cook told The Wall Street Journal that rising memory prices have made current pricing 'unsustainable' and that increases are 'unavoidable.' He did not specify exact amounts or timing.

Apple is facing higher costs for DRAM and NAND flash memory chips due to supply constraints and booming demand from AI data centers. These components are essential for iPhones, iPads, and Macs, forcing Apple to pass on costs to consumers.

All Apple products that use memory chips are likely affected, including iPhones (especially the upcoming iPhone 17 series), iPads, and Macs. The increases may impact both the baseline and upgraded storage configurations.

While Apple has not disclosed exact figures, analysts expect a $50 to $100 increase for flagship iPhones, potentially pushing the top-tier Pro Max model above $1,300. Smaller increases are possible for other models.

Tim Cook did not announce a specific date. Historically, Apple adjusts prices at product launches, so the first wave of increases may come with the iPhone 17 series expected in September 2025, followed by new iPads and Macs later in the year.

Memory components account for approximately 10–15% of the bill of materials in a high-end iPhone. Sharp increases in DRAM and NAND prices directly compress Apple's profit margins, making price adjustments necessary to maintain profitability.

Original source

www.cnet.com

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