Apple Will Raise Prices as Tim Cook Calls Memory Cost Surge a '100-Year Flood'

Apple Inc. (NASDAQ: AAPL) is preparing to raise prices across its product lineup after CEO Tim Cook acknowledged the company can no longer absorb skyrocketing costs for memory and storage components.

Details

In a Wall Street Journal interview published Wednesday, Cook said: "Unfortunately, price increases are unavoidable. We're doing our best to mitigate the huge increases that are being passed to us, but the situation has become unsustainable."

Cook did not specify the size or timing of the price hikes but indicated that all product lines, including iPhone and Mac, could be affected.

Context

The announcement comes amid a global surge in DRAM and NAND memory chip prices, driven by increased demand from data centers and AI applications, as well as supply constraints from major vendors like Samsung and Micron.

What It Means for Investors

Price increases could boost Apple's revenue in the short term, but may dampen demand if consumers balk at higher prices. The market will watch next quarter's sales data to gauge customer acceptance of the new pricing.