Tim Cook Says Apple Price Increases Are 'Unavoidable' Due to Memory Costs

[capamac]

A certain percentage of Apple users really want their "AI."

Well, you got your AI.

Enjoy the price hikes.

 

[smeagol]

Apple was never absorbing costs to begin with because their memory tier upgrades were so ridiculously and comically expensive to begin with. Even when every other manufacturer was raising prices Apple still enjoyed a healthy margin and they rode the wave of goodwill by not raising prices. Now that high prices are the new normal, they can say finally say they don't have a choice but to pass it on to the consumer. In reality, they just want their margin of profit to be where it was before, if not slightly higher.

 

[963852741]

The answer seems to be less RAM and more efficient computers. Which Apple is well placed to take advantage of.

How dare you to suggest optimising the code.

 

[Cmd031304]

Nobody should be surprised by this. Earlier this year, some people actually believed the myth Apple buys memory years in advance and would be shielded from any price increases. The reality is AI hyperscalers have far deeper pockets than Apple. Nobody is immune to DRAM and NAND shortages.

This situation won't be fixed until 2028 or 2030 when other fabs around the world come online.

Or when the AI bubble pops and that might happen sooner.

 

[Alwis]

In other words, if you were thinking of buying in the next 6 months, probably now is the time.

Im planning on replacing my 2020 iMac with a MacStudio later this year. The. iMac has 64 GB / 4 TB and so should the Studio. Buying the old modell ist not really on option. It would be fast enough, sure, but I would probably use one or two years of software updates. I also could keep the iMac for one or two more years, but who knows if memory prices decreased by then.

Loose loose situation in this case

 

[Populus]

Nobody should be surprised by this. Earlier this year, some people actually believed the myth Apple buys memory years in advance and would be shielded from any price increases. The reality is AI hyperscalers have far deeper pockets than Apple. Nobody is immune to DRAM and NAND shortages.

This situation won't be fixed until 2028 or 2030 when other fabs around the world come online.

Gosh, I guess it is time to stop waiting and get my M5 MacBook with upgraded RAM as soon as this week. I was willing to wait a bit more until the Back to School arrived to Europe, but I guess I’m ordering it now and cross my fingers that when it is delivered (in a few weeks) the promo is active here and I can claim it.

 

[boswald]

Thank God I bought my Mac with a higher memory configuration when I did. Who knows how bad these spikes will be? Also, I am in the market for a new phone, so if the 18 PM is too expensive I might have to get a 17 PM if they're discounted.

 

[CWallace]

I think they’ll do something similar to a couple years ago and increase the base iPhone 18 pro to 512gb and keep the price of that configuration the same. And maybe add a 2TB option.

This is what I am thinking will happen. We've seen Apple increase the base storage of iPhones and Macs and raising the MSRP by some or all of the original upgrade price.

 

[KPOM]

Apple was never absorbing costs to begin with because their memory tier upgrades were so ridiculously and comically expensive to begin with. Even when every other manufacturer was raising prices Apple still enjoyed a healthy margin and they rode the wave of goodwill by not raising prices. Now that everyone else has raised prices and it's the new normal, they can say they don't have a choice but to pass it on the consumer. In reality, they just want their margin of profit to be where it was before, if not slightly higher.

They also used it as an opportunity to gain new customers (e.g. MacBook Neo). But as the WSJ article points out, Apple historically was a price maker with suppliers. Now that other companies are placing even bigger purchase orders, Apple is in the unusual position of price taker.

 

[barkingsheltie]

Now the real question is once all these memory shortages get sorted out or they find some new solution to fix it, will these companies ever drop their prices back down…? I think we all know the answer to that one.

If they don't, with some confidence we can assume consumers will *vote* with their wallets - either by purchasing less equipment, or switching. If memory costs decrease, thereby lowering overall prices, it's an opportunity for other companies to increase market share. I say that knowing that in our current world, moving away from Apple means moving to another platform, which is different from the idea of market forces ensuring competition in the traditional sense, e.,g a refrigerator is not like a phone or computer.

So that sucks - I wouldn't want to switch back to Windows and/or Android. So, I hope Apple recognizes the potential threat and tries to act in both their and consumer's best interests. Ok, I know this is almost fairy tale wishful thinking, 😎

 

[Falco McGregor]

Has anyone checked in yet on Max Tech’s Vadim Yurev following this broadside from Cook? He’s been one of the biggest guys on X dismissing what’s been going on in the supply market and consistently hyping that Apple is positioned to not raise its prices in the immediate future. Thanks to the hyperscalers, lower-priced tech configurations like the Mac Mini and Neo were always going to be unsustainable.

 

[anthony13]

We all knew that was coming eventually but the real question is when will they even get these products out the gate? Mac Studio really needs an update. I know October is the rumored time but its getting a bit out of hand.

 

[Amazing Iceman]

Well, pass the cost then. People come and go… to Android. It has never been easier than now to find simple, cheap and functional smartphone that works just like any iPhone.

Tim forgot that the market is oversaturated these days with boring slates. And customer loyalty/ecosystem is no longer that relevant

I see you don't understand what exactly is going on. It's not Apple being greedy. It's the shortage of RAM affecting the whole industry. So your beloved Android Phones will also suffer from this issue.
To give you an example, yesterday I ordered a UniFi Router, Switch and 2 Access Points for a client.
They added a "Memory Surcharge" fee of $104.00 to the order.
And if it's not this, it's the Tariff, or the high cost of fuel, etc.
It's something the vendors have to pay, and pass the cost to the buyer.

 

[sfrsteel]

As long as they’re honest enough to bring the prices back down when memory becomes sustainable, then I’m happy.

That is a dream. AI isnt going to stop being a thing, neither are data centers to power it. Memory is going to be an issue for a long long long time.

What i find is interesting.. It was Video Cards (With the mining) now its memory.. Its always going to be something jacking up the prices it will be an ongoing excuse.

 

[mikerahl]

Countries like Canada could help with this by restricting the availability of rare earth metals and other natural resources so none can be used for AI data centers. The minute it is found that any resources are used in AI chip manufacturing, the flow of such resources is cut off immediately.

 

[Maigrais]

Yes, this was inevitable. Despite the exorbitant amounts of money Apple has, they couldn’t forego price increases for much longer. Business is business. Buy everything you need from Apple now everyone!!

 

[963852741]

That is a dream. AI isnt going to stop being a thing, neither are data centers to power it. Memory is going to be an issue for a long long long time.

What i find is interesting.. It was Video Cards (With the mining) now its memory.. Its always going to be something jacking up the prices it will be an ongoing excuse.

It will blow over very soon. There are many reasons.

 

[Cmd031304]

There is actually a simple solution: everyone stops using LLM's. Then AI companies will collapse and the memory and storage situation will improve in no time.

 

[All Taken]

*Prices may increase due to parts pricing and availability
** Prices will not decrease when this pressure alleviates

 

[Entilzha]

M4 Mac Mini, 17 Pro, M1 iPad Pro, Series 10 titanium, a couple of HomePods in my living room, and a couple of AppleTVs.

I’m set for the foreseeable!

 

[sfrsteel]

Well, pass the cost then. People come and go… to Android. It has never been easier than now to find simple, cheap and functional smartphone that works just like any iPhone.

Tim forgot that the market is oversaturated these days with boring slates. And customer loyalty/ecosystem is no longer that relevant

With Apple and Samsung being the only two real players in the smart phone game.. Prices are going up on both brands. If your escaping to Samsung because Apple is to expensive, good luck.

 

[klasma]

I have been buying semiconductor stock to compensate.

 

[BGrifter]

On the bright side it’s not like Apple just announced a bunch of new features using tech driving the RAM crisis.

Oh… really? Siri AI? Huh.

 

[Falco McGregor]

Well, pass the cost then. People come and go… to Android. It has never been easier than now to find simple, cheap and functional smartphone that works just like any iPhone.

Tim forgot that the market is oversaturated these days with boring slates. And customer loyalty/ecosystem is no longer that relevant

Everyone is raising prices. Maybe not across whole product lines, but certainly strategically to keep from eroding their margins further.

 

[gummybear2026]

No one likes price increases but when you cut corners on the base model you will have a major problem.