Apple CEO Tim Cook says the company is fighting 'a hundred year flood' on memory pricing

Apple CEO Tim Cook described the current memory pricing situation as a 'hundred-year flood' during a quarterly earnings call on July 30. He revealed that Apple will pay even more for memory in the Sep... Read original →

Apple’s escalating memory costs reflect a fundamental misalignment in the semiconductor supply chain, driven by surging demand from AI data centers for HBM and DDR5. Suppliers like SK Hynix are leveraging their technological edge and production capacity to capture premium margins, while Apple is forced to rely on inventory buildup and price hikes—strategies that are already showing diminishing returns. Geopolitical shifts, including the EU’s Chip Act and U.S. CHIPS Act, are reshaping global sourcing, with Taiwan and Hong Kong playing pivotal roles in manufacturing. Competitors such as Samsung and Micron are expanding capacity to gain market share. Over the next 12–24 months, sustained AI growth will likely keep memory prices elevated, pressuring Apple’s gross margins and accelerating the need for strategic supply chain consolidation.