AI is hurting Apple in more ways than one: it may force iPhone price increases
TechCrunch • • business
Key Points:
- Apple CEO Tim Cook warns that rising costs of memory and storage chips, driven by AI's demand, will likely lead to higher prices for upcoming Macs, iPhones, and iPads.
- Chip costs have increased fourfold since last year, creating an "unsustainable" situation despite Apple's efforts to absorb these expenses.
- The next iPhone, expected to launch in September, is anticipated to be affected by price hikes, with estimates suggesting an increase of around $270 for the iPhone Pro model.
- Apple faces ongoing challenges with its AI strategy and has previously paid a $250 million settlement related to unmet AI feature promises.
- The memory chip shortage, dubbed "RAMageddon," is impacting a broad range of Apple products, including Apple Watch, Mac, iPad, and Apple Vision Pro.
