Apple expects memory costs to rise amid component shortages
The company is currently mitigating price increases through previously purchased stockpiles
On November 2, during its earnings call, Apple warned of a further increase in memory expenses. The company is currently mitigating the impact of rising prices through previously purchased stockpiles, reducing other costs, and increasing prices for some devices. Meanwhile, its production costs, as reported, have risen by 33 billion dollars over several months.
Apple’s Chief Operating Officer John Ternus stated that the memory price hike in the September quarter was partially offset by stockpiles and lower costs for some components. In June, Apple raised prices for Mac and iPad, and in September, for iPhone, which also helped reduce cost pressures. The company has not yet announced any new price increases.
Apple’s suppliers warn that shortages may persist. Samsung expects memory demand to significantly exceed supply due to the development of artificial intelligence infrastructure, and a company representative suggested that shortages could continue until 2028 or beyond. SK Hynix and Micron have also reported prolonged supply constraints.
