Referred to as RAMageddon, the soaring demand for hardware driven by AI has led to a global shortage of memory chips. Apple’s CEO, Tim Cook, has alerted customers that future Mac, iPhone, or iPad models may come with higher price tags due to escalating costs of memory and storage components.
In a recent discussion, Cook emphasized that price hikes are “inevitable,” despite efforts to manage chip costs that have quadrupled over the past year. He described the current situation as “not sustainable.”
While Cook did not specify which products will see price increases or when these changes will occur, he has previously voiced concerns regarding the repercussions of RAMageddon. Back in April, after reporting record sales, he indicated that these escalating costs could affect Apple’s future financial performance. John Ternus, the incoming CEO, also expressed similar concerns during that timeframe.
If Apple implements price hikes, experts have indicated that the iPhone is very likely to be affected. The company is gearing up for its next iPhone release in September, providing an opportunity to announce any price adjustments. Moreover, Apple produces various other devices utilizing memory (DRAM) and storage (NAND) chips, including the Apple Watch, Mac, iPad, and Apple Vision Pro.
The extent of these price increases remains uncertain. However, research firm TechInsights suggested that Apple may need to add approximately $270 to the price of the next iPhone Pro in order to maintain its profit margins, with the iPhone 17 Pro starting at $1,099.
To date, the rise of AI has not provided significant advantages for Apple. The company is currently under pressure to develop its AI initiatives for its products. Earlier this year, it settled a false advertising lawsuit for $250 million due to failing to deliver promised AI features from two years ago.
At the recent Worldwide Developers Conference, Apple showcased advancements in addressing those previous AI commitments, including a redesigned Siri. However, increased on-device processing may result in a greater demand for memory, creating a situation where consumers could ultimately end up spending more on Apple products.
