Apple to raise prices to offset memory chip shortage, Cook says - MSN

Apple CEO Tim Cook announced that the company will raise product prices to offset rising costs of memory and storage chips, highlighting the severe challenges facing the semiconductor industry. The su... Read original →

Apple's price hike stems from a structural imbalance: AI server demand is monopolizing DRAM and HBM supply, starving consumer electronics. TSMC’s 3nm capacity is prioritized for NVIDIA’s AI accelerators, diverting EUV resources away from memory scaling. This misallocation forces smartphone makers to subsidize data center expansion. Geopolitically, U.S. CHIPS Act subsidies won’t resolve the concentrated risk in memory manufacturing—still dominated by Samsung, SK Hynix, and Taiwan, China. Any export control escalation could cripple Apple’s buffer strategy. Competitors like Samsung may lock long-term memory deals or accelerate in-house solutions, while Qualcomm could exploit mid-tier pricing gaps. Over the next 18 months, memory scarcity—not logic chips—will dictate premium device economics. Apple’s cash reserves offer temporary insulation, but if HBM4 ramps slower than AI demand surges, the industry faces an era of 'memory rationing' for high-end products.