Apple CEO Tim Cook warns of "100-year flood" in memory pricing due to AI demand, expects further cost increases and supply constraints to impact iPhone, Mac, and iPad sales
Apple CEO Tim Cook stated that the company is facing a "100-year flood" in memory pricing, a situation he has never seen in over 40 years in the consumer electronics industry. This surge in memory costs, driven by strong AI data-center demand, has already led Apple to raise prices for Macs and iPads. Cook expects memory costs to climb further in the current quarter and warned that supply constraints will affect iPhone, Mac, and iPad sales in September. The company has paid higher memory costs for three consecutive quarters, significantly impacting gross margins, and anticipates even higher costs in the September quarter.
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