Apple reveals strategy to tackle global memory price surge
Like other hardware manufacturers, Apple is facing the impact of surging global memory prices triggered by the rapid development of generative artificial intelligence. According to TechCrunch, Apple CEO Tim Cook has likened the spike in memory prices to a ‘hundred-year flood’, which is significantly affecting the production costs of iPhones, MacBooks, and other devices.
In its latest financial report, Apple recorded the quarter ending June 2026 as the best in the company’s history, with iPhone sales growing by 22 per cent year-on-year and Mac computer sales increasing by 29 per cent compared to the same period last year. However, the company is bracing for the impact of memory shortages, dubbed ‘RAMageddon’, which is expected to worsen.
The company faces major challenges in securing advanced memory nodes used in Apple’s silicon chips, which power the A-series and M-series processors found in iPhones and Macs. “We continue to expect high levels of demand. However, with a lack of flexibility in the supply chain, we expect the impact of supply constraints to increase significantly sequentially,” said Tim Cook during Apple’s quarterly earnings call. “Currently, we are seeing some very significant constraints with limited flexibility in the supply chain to address them.”
The company reported that its inventory value reached US$11.1 billion (approximately Rp199 trillion), nearly double the inventory value of US$5.7 billion (approximately Rp102 trillion) reported in September last year. This indicates a shift in the supply chain approach long maintained under Cook’s leadership, which emphasised minimising inventory. “Basically, we will fight hard on the supply side,” Cook stated.
In addition to Apple, technology companies such as Meta, Samsung, Microsoft, and Sony are also raising the prices of their hardware products due to increased production costs. For the next quarter, Apple expects its revenue to grow by 9 to 11 per cent year-on-year, a lower figure compared to the approximately 16 per cent growth maintained by the company in recent quarters.