We are in a phase where the memory crisis needs no introduction and its impact on the entire tech industry. We’re already seeing the prices of smartphones, laptops, and other related products take a significant jump. Samsung says that the memory shortage may even get worse in 2027. Now, Apple’s CEO Tim Cook is chipping in his two cents on how the surging memory costs will impact iPhone manufacturing and its price in the coming days.
Apple braces for higher memory costs in the June quarter and beyond
Apple reportedly faced higher memory costs in the March quarter, and it expects those costs to go up even more. During the quarterly earnings call, Tim Cook said that memory expenses will increase significantly in the June quarter and “drive an increasing impact” on Apple’s business beyond that. The company was able to partially offset the impact of this crisis and the surging prices by pre-purchasing. It is currently selling inventory.
However, it’s from the June quarter, where things will start getting worrisome. The DRAM and NAND inventory that it holds will start running thin. This is when the costs may start climbing. According to Tim Cook, Apple is “continuing to evaluate” the situation and considering a “range of options.” However, he declined to provide more insights into how Apple plans to deal with the crisis.
The company is evaluating the situation
As analysts have noted, Apple may have two choices when it needs to purchase memory at a higher price. One is to absorb the increased costs or pass on the costs to customers by hiking the iPhone price. It’s believed that Apple might opt to absorb the costs to keep iPhone prices stable, while the rest of the industry is in chaos. Though it’s just a speculation and not a confirmed strategy.
How Apple ultimately handles the iPhone price strategy amidst the rising memory costs will likely become clearer around the time the iPhone 18 Pro debuts.
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