On June 17, Tim Cook, Apple’s CEO, stated in an interview with The Wall Street Journal that "unfortunately, price increases are unavoidable," adding that the company has tried to shield customers from rising costs, but the situation has become unsustainable.
Cook did not specify when or how much prices would increase, nor which products would be affected. However, the next major product launch is expected to be the iPhone 18 series in September, with potential price hikes for Macs and iPads occurring before then.
This decision is linked to the competition among AI companies for memory semiconductors. Major tech firms like Google, Microsoft, Meta, and Amazon have expanded 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 increased costs while maintaining its current profitability, the price of the next iPhone Pro model could rise by about $270, potentially bringing the iPhone 18 Pro's price to around $1,299.
Cook explained that the demand for high-bandwidth memory (HBM) used in AI servers has made it difficult to secure DRAM for consumer devices. He emphasized that memory prices and supply must 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 expanding production, the prioritization of special memory for AI could lead to a supply shortage of consumer semiconductors by as much as 15% compared to demand.
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 happens once every hundred years."
* This article has been translated by AI.
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