In an interview with The Wall Street Journal on June 17, Apple CEO Tim Cook stated, "Unfortunately, price increases are unavoidable. We have tried to shield customers from rising costs, but the situation has become unsustainable."
Cook did not specify the timing or extent of the price increases, but the next major product launch is expected to be the iPhone 18 series in September, with potential price hikes for the Mac and iPad occurring beforehand.
This decision is linked to the competition among AI companies for memory semiconductors. Major tech firms like Google, Microsoft, Meta, and Amazon have been expanding their data center investments, causing prices for DRAM and NAND flash memory to quadruple since last year. DRAM is used for running applications, while NAND flash is used for storing photos and videos.
Market research firm TechInsights estimates that if Apple reflects the rising costs while maintaining its current profitability, the price of the next iPhone Pro model could increase by approximately $270, potentially bringing the iPhone 18 Pro's price to around $1,299.
Cook explained, "The demand for high-bandwidth memory (HBM) used in AI servers is making it difficult to secure DRAM for consumer devices." He emphasized the need for memory prices and supply to return to reasonable levels for consumer products.
The DRAM market is dominated by Samsung Electronics, SK Hynix, and Micron, while the NAND flash market includes these three companies along with Kioxia and SanDisk. Morgan Stanley predicts that despite companies' expansions, the production of specialized memory for AI will take precedence, potentially leading to a supply shortfall of up to 15% for consumer semiconductors.
Apple has indicated that it may utilize its cash reserves to expand memory supply but has ruled out building its own factories.
Cook described the recent fluctuations in semiconductor prices as "like a flood that occurs once every hundred years."
* This article has been translated by AI.
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