CEO Tim Cook: Apple will increase product prices due to the memory chip crisis

The above information was shared by CEO Tim Cook in an interview with the Wall Street Journal (WSJ). According to him, Apple is no longer able to continue absorbing all the increased costs from component suppliers.

The main reason comes from the wave of investment in AI globally, leading to the need to build large-scale data centers. This causes technology corporations to compete fiercely for the supply of memory chips and storage devices, pushing up component prices sharply.

Previously, associations representing the automotive, retail and electronics industries in the US also warned that skyrocketing demand for memory chips could cause prices of many consumer goods to increase, while also putting pressure on the global supply chain.

"Unfortunately, price increases are inevitable. We have made every effort to minimize the impact of price increases passed on by suppliers, while also trying to protect consumers. However, the current situation has become unsustainable," Tim Cook said.

Apple has not yet announced the expected price adjustment or the product lines that will be affected.

According to WSJ sources, Apple is preparing to launch the first folding screen iPhone model with the iPhone 18 Pro and iPhone 18 Pro Max duo next September. However, the company has not confirmed this information.

Tim Cook said the cost of both storage and RAM is a big concern for Apple, especially the DRAM market. He noted that semiconductor manufacturers are prioritizing production capacity for high bandwidth memory (HBM) - a key type of component used in AI servers.

"Supply is increasingly limited while demand for consumer devices remains high, causing memory manufacturers to continuously increase prices. The market needs to soon regain balance in both supply and price for consumer electronics products," he emphasized.

Tim Cook also said that Apple is ready to take advantage of its abundant cash resources to help ensure the supply of components. However, the company has no plans to build its own memory chip or storage device factories.

Notably, Tim Cook will leave his position as CEO of Apple from September 1 and move to the role of Executive Chairman. His successor is John Ternus, currently in charge of the company's hardware engineering department.