Apple plans a significant increase in memory spending in Q2 and subsequent periods

Apple warns of rising memory prices

At the beginning of 2024 Apple already noted an increase in memory chip costs. CEO Tim Cook said that by the end of the year the price hike for components will only intensify.

- Q1 – the company faced higher memory chip prices but partially offset them with excess inventory.

- Q2 – a significant cost rise is expected. According to Cook, after June expenses will become even more pronounced and have a noticeable impact on business.

Apple is exploring “several options” for addressing the issue, but no specific plans have been disclosed yet.

The cause of price increases: a global memory shortage driven by rapid AI development. Manufacturers prioritize server chips, leaving consumer devices in the shadows. The inability to quickly ramp up chip production only heightens price pressure.