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Apple customers could pay more as AI demand drives up chip costs: report
Fox Business • • general
Key Points:
- Apple CEO Tim Cook warned that rising costs for memory and storage chips are forcing the company to consider increasing prices on its devices, though no timeline or specific products were disclosed.
- The surge in chip prices is linked to increased demand from AI companies, with DRAM chips being a particular concern due to limited supply and higher costs.
- Research suggests Apple may need to add approximately $270 to the next iPhone Pro model to maintain profit margins amid these cost pressures.
- Cook indicated Apple might use cash reserves to help expand chip supply but ruled out building its own memory manufacturing facilities.
- Tim Cook will step down as CEO on September 1, transitioning to executive chairman, with John Ternus set to succeed him as CEO.
