Apple experienced higher memory costs in the March quarter, and the impact is expected to worsen as the year progresses. Apple CEO Tim Cook said Apple expects “significantly higher memory costs” in the June quarter and that beyond June, memory costs will have “an increasing impact” on Apple’s business.
Cook said the higher memory costs were partially offset because the company is selling existing inventory it has stored. As these inventories decrease, Apple’s costs will increase.
According to Cook, Apple will review a “range of options” and the company “continues to evaluate” the situation. Cook declined to provide further information on how Apple plans to resolve the issue.
Memory costs have skyrocketed due to global supply constraints caused by demand for AI servers. Chipmakers are prioritizing memory for AI servers over consumer devices, driving up prices.
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