Apple Faces $200 iPhone Price Hike as Memory Costs Double
AAPL•Memory chip prices have doubled over the past year due to AI data center demand, driving up Apple’s component costs and prompting CEO Tim Cook to call price increases unavoidable. Apple may need to add about $200 to iPhone prices to preserve margins, testing consumer demand.
1. Memory Cost Surge
Over the past year, memory chip prices have doubled as AI data center operators ramp up purchases. This surge has benefited chipmakers like Micron but squeezed Apple’s device cost structure, leading CEO Tim Cook to warn that further price increases are unavoidable.
2. Potential iPhone Price Increase
To offset higher component expenses, Apple is considering adding roughly $200 to new iPhone models. While the company’s strong brand and integrated ecosystem may support premium pricing, the move risks dampening consumer demand and could influence sales volumes and overall revenue growth.
