iPhone Not Safe! Extreme Crisis Continues – Apple Boss Reveals
Price increases for Apple products, including the iPhone, appear unavoidable. At least that is according to remarks by Apple CEO Tim Cook in response to the memory crisis currently sweeping the world. Analysts state that even Apple is not immune to the effects of the crisis, which is said to have reached an extreme and continuously expanding level, despite Apple’s long-standing reputation for being able to manage costs effectively. This was revealed in an interview Tim Cook gave to the Wall Street Journal this week. Indeed, Tim Cook did not explicitly state when prices would rise or which product types would be affected. However, he stressed that product prices will be increased due to the memory shortage. The price hike was described as ‘unavoidable’. He said the memory crisis situation is causing unsustainable conditions. He also outlined the types of memory Apple requires: DRAM, used for short-term data storage, and NAND, often referred to as solid state drives and used for long-term data storage. He added that AI chips for data centres use high-bandwidth memory, which is faster and requires more power than smartphone memory. A single Nvidia Blackwell B200 chip has 192GB of high-bandwidth memory. Eight such chips can be installed in one server, and more than 2,000 servers can be arranged into a single cluster. Meanwhile, the Apple iPhone comes with 8GB or 12GB of RAM. On the other hand, Tim Cook said Apple could use its cash reserves to help increase supply. ‘We are willing to use our balance sheet to help be part of the solution,’ he said. The AI explosion is said to be causing uncontrollable demand for memory, triggering a crisis or shortage worldwide and driving up prices. Apple signalling for consumers to prepare for price increases confirms the problem is quite significant. In recent years, consumers have flocked to use chatbots and AI agents, leveraging sophisticated new artificial intelligence models that are changing the way we live and work. And, of course, there is a price for that, though not in the way they expected. ‘This shows how deep the problem is. Even Apple cannot be safe, despite having all the expertise, long-term planning, and everything. It is beyond their ability to limit the impact,’ said Gartner analyst Ranjit Atwal.