Apple Will Raise Prices Due To Soaring Memory Costs: CEO Tim Cook Says 'This Is A 100-Year Flood'

Apple is raising prices across its product lineup as memory and storage component costs surge, CEO Tim Cook announced. Cook characterized the situation as a "100-year flood," pointing to a massive reallocation of DRAM and NAND supply toward AI infrastructure by major tech companies.

Memory chip prices have quadrupled as Google, Microsoft, Meta, and Amazon expand AI capital expenditures, creating unprecedented demand for components Apple relies on for iPhones, iPads, and Macs. The supply crunch stems from chipmakers prioritizing AI server memory over consumer electronics, forcing Apple to absorb higher costs or pass them to customers. Cook chose the latter.

The pricing announcement comes as Apple navigates margin pressure from component inflation while competitors face similar headwinds. The company has historically maintained premium pricing power, but the magnitude of this cost spike—quadrupling memory prices—tests consumer tolerance at a time when device upgrade cycles have already lengthened.