It’s called RAMageddon: AI’s insatiable demand for hardware has caused a global shortage of memory chips. Now outgoing Apple CEO Tim Cook is warning its customers that your next Mac, iPhone or iPad could be more expensive thanks to the rising cost of memory and storage chips.
In a recent interview, Cook he told the WSJ that price increases are “inevitable,” despite efforts to absorb chip costs that have quadrupled since last year. He described the situation as “unsustainable”.
Cook didn’t name which products would be affected or when prices would go up, but he has sounded the alarm about the effects of RAMageddon in the past. In April, after posting record quarterly sales, he said these higher costs could affect Apple’s future business results. Incoming CEO John Ternus as well warned about the issue the same month.
If Apple raises prices, the iPhone seems almost certain to be affected, memory supply experts say he told the Financial Times. The company is expected to release its next iPhone in September, which gives it an opportunity to announce increased prices. Of course, Apple sells many other devices that contain memory (DRAM) and storage (NAND) chips, including the Apple Watch, Mac, iPad, and Apple Vision Pro.
It’s unclear how much more expensive any of these products will be, though research firm TechInsights gave the WSJ its estimate. He said Apple would need to add another $270 to the next iPhone Pro to keep its profit margin intact. The iPhone 17 Pro starts at $1,099.
So far artificial intelligence has not been a particular boon for Apple. The company is already under pressure to come up with its AI strategy for its devices. It even paid a $250 million settlement earlier this year to end a false advertising lawsuit filed after it failed to deliver the artificial intelligence features it had promised two years ago.
The company’s Worldwide Developers Conference held earlier this month showed progress in fulfilling those earlier AI promises, including an overhaul of Siri. Of course, more processing on the device could mean a greater need for memory — a trajectory that seems destined to end with consumers paying more for Apple products.
When you purchase through links in our articles, we may earn a small commission. This does not affect our editorial independence.
