Tim Cook says prices of Apple devices will jump amid memory chip shortage - ABC News - Breaking News, Latest News and Videos

Apple CEO Tim Cook has announced that a price hike for Apple's devices is 'unavoidable' amid a global shortage of computer memory and storage chips. The crisis is largely driven by the surging demand ... Read original →

The memory chip shortage has evolved from a cyclical blip into a structural crisis. Insatiable AI server demand for HBM and DDR5 is cannibalizing consumer electronics allocation, forcing Apple to absorb 'chipflation' costs. Technically, EUV tool delivery delays and advanced packaging bottlenecks have stretched DRAM/NAND capacity ramp cycles beyond 18 months, worsening supply-demand mismatches. On the compliance front, U.S.-Japan-Netherlands export controls and constraints on Samsung/SK Hynix fabs in mainland China undermine supply chain resilience. Strategically, Samsung may prioritize high-margin AI chips, while Xiaomi or OPPO could be forced into suboptimal second-source deals, sacrificing performance for availability. Over the next 12–24 months, memory will transition from a commodity to a strategic asset, permanently elevating device price floors and accelerating market consolidation—brands without vertical integration face existential risk.