The iPhone maker predicted strong sales growth last week, spurred by demand for its iPhone 17 models. Chief Executive Officer, Tim Cook told investors he expected memory chip prices to increase sharply, but declined to answer analysts’ questions about whether Apple would raise prices in response.
“There are different levers that we can push, and who knows how successful they’ll be, but there’s just a range of options,” Cook said on the post-earnings call.
He did not address whether the shortage offered Apple a chance to increase its iPhone and Mac market share by maintaining prices at the expense of rivals who might have greater supply constraints.
Analysts assume that even amid a shortage, Apple has the clout with long-time suppliers such as Samsung Electronics, SK Hynix and Micron to secure enough chips to make iPhones, unlike smaller phone makers.
A rapid build-out of AI infrastructure by tech firms such as Meta, Google and Microsoft has absorbed much of the supply of memory chips, lifting prices as manufacturers prioritize components for higher-margin data centers over consumer devices. Memory chips, or DRAM, are crucial to smartphones as they allow power-hungry applications to run smoothly.
–Reuters–
