Apple just announced unprecedented price increases for the majority of its product lineup, with only iPhone and Apple Watch not yet seeing a price hike. This is because of the AI-driven memory crisis, caused by AI data centers buying up loads of memory supply, putting tons of pressure on the market.
Apple tried to hold out for quite a while, but the situation got out of hand. It’s worth noting that these memory pressures have existed for the entirety of the year, and it’s only now getting to the point where it’s unsustainable. Nonetheless, we’ll be diving into the why of it all, and when you should expect things to get better.
Memory supply pressures
As outlined by outgoing Apple CEO Tim Cook in an interview with The Wall Street Journal, Apple simply couldn’t sustain its existing prices anymore with the sudden surges:
“Unfortunately, price increases are unavoidable,” he said. “We’re doing our best to mitigate the huge increases that are being passed to us, and we’ve been trying to shield our customers from the increases, but the situation has become unsustainable.”
