Apple CEO Tim Cook Reports Rising Memory Chip Costs
Tim Cook reported that Apple's memory procurement costs rose in the June quarter and are expected to increase further due to AI-driven demand.
Apple CEO Tim Cook announced during a recent earnings call that the company paid significantly more for memory in the June quarter than it did in March. He stated that memory costs will be "even higher" in the current quarter, signaling sustained pricing pressures across the supply chain.
These increases are driven by demand outstripping supply for DRAM, NAND, and high bandwidth memory used in AI workloads. This environment has created a seller's market for dominant chip makers, including Micron Technology, Samsung Electronics, and SK Hynix.
The trend may provide a recovery catalyst for Micron Technology, whose stock experienced a 26% decline from its June peak amid investor fears regarding cyclical downturns and competition from China.
Keep reading in the app
The full story and every source, free in the app.
Coming soonGoogle Play