Apple and Micron Clash Over AI-Driven Memory Shortage, Price Hikes
Apple raised Mac and iPad prices by $100-$300 due to memory cost spikes, which Tim Cook called unavoidable. Micron's Sumit Sadana countered that past low pricing left suppliers unable to invest, leading to the current shortage.
Apple has increased prices on Mac and iPad models by $100 to $300, citing the rising cost of memory. CEO Tim Cook described the memory price spike as "unavoidable." The increase comes as AI server demand consumes a growing share of memory supply.
Micron's Sumit Sadana pushed back, arguing that historically low memory prices had prevented suppliers from investing in capacity. When profits collapsed, suppliers could not expand, and now the market is reacting. The episode highlights a broader trend: the era of cheap memory chips is over, AI is absorbing supply, and consumers are bearing the cost. Hardware makers are losing margin control as component prices rise.
Source: First Squawk