Supply crunch forces Apple to raise prices across all devices
Apple plans to hike prices across most if not all of its devices as the tech giant struggles to absorb the soaring costs of critical components.
In a dramatic reveal, Apple CEO Tim Cook took the unusual step of warning consumers that the tech giant can no longer protect wallets from escalating costs.
Speaking in an exclusive interview with The Wall Street Journal, Cook confirmed that price surges across the tech sector have forced his hand.
‘Unfortunately, price increases are unavoidable,’ Cook said as the firm gears up for its next wave of product rollouts.
The Apple boss explained that the global supply chain has triggered a severe financial squeeze behind the scenes, leaving them with no choice.
‘We’re doing our best to mitigate the huge increases that are being passed to us, and we’ve been trying to shield our customers from the increases, but the situation has become unsustainable,’ he said.
While the exact timeline for the price shock remains under wraps, Cook declined to offer specific details on when or how hard the increases will hit individual products.
Instead, he pointed directly to the root of the crisis, stating, ‘There’s less supply at a time when consumers want devices and the memory guys are passing along huge price increases.’
‘Unfortunately, price increases are unavoidable,’ said Apple CEO Tim Cook
Research firm TechInsights estimates that passing these higher component costs directly onto shoppers would add a bruising $270 to the price of the next iPhone Pro model
The executive made it clear that the current market condition is heavily weighted against consumer electronics, adding, ‘We definitely need memory pricing and supply to return to reasonable levels for consumer products. That’s the bottom line.’
Experts warn that the financial pain could hit shoppers much sooner than expected, particularly for those looking to buy new Macs and iPads.
Apple has already shown a willingness to quietly adjust prices, having raised the starting price of the Mac Mini last month outside of its usual glittering launch events.
Industry insiders note that the price hikes are being aggressively driven by a global shortage of essential memory and storage chips.
Memory components in particular have become a battleground as artificial intelligence companies gobble up supply for massive server farms, creating an intense bidding war.
Since last year, tech titans including Google, Microsoft, Meta, and Amazon have vastly ramped up their capital spending, sending chip prices through the roof.
As a direct result of this AI spending spree, the prices for both memory and storage chips have shockingly quadrupled.
The crisis involves both DRAM memory, which runs active apps, and NAND storage, which acts as the digital filing cabinet for a phone's photos and videos.
Apple has already shown a willingness to quietly adjust prices, having raised the starting price of the Mac Mini last month outside of its usual glittering launch events
Apple said its hardware chief John Ternus will take over as CEO from Tim Cook from September 1, while Cook moves into the role of executive chairman
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Faced with these surging bills, Apple must raise retail prices substantially if it wants to protect its traditionally high profit margins.
Research firm TechInsights estimates that passing these higher component costs directly onto shoppers would add a bruising $270 to the price of the next iPhone Pro model.
To make matters worse for consumers, analysts predict that chip prices will continue their relentless upward trajectory well into 2027.
The shortage has become so acute that supply for consumer tech is estimated to fall up to 15 percent short of demand, according to forecasts by Morgan Stanley.
Amidst the chaos, rumors are swirling that Apple is using this crisis to radically overhaul its retail strategy for its highly anticipated next-generation device.
The upcoming iPhone 18 lineup, widely expected to drop in September, is slated to feature Apple's first-ever folding phone device.
Leaked reports suggest the luxury folding handset, rumored to be called the iPhone Ultra, will carry a jaw-dropping price tag of $1,999.
By isolating this ultra-premium, high-margin folding phone at the absolute top of its portfolio, Apple hopes to attract affluent buyers while keeping standard Pro models at their current pricing.
When questioned about whether national security rules should be loosened to allow chip supply from China to ease the pressure, Cook refused to rule anything out.
‘I think everything needs to be on the table,’ the Apple chief executive noted, concluding, ‘I think we should look at all supply.’
Badenoch blasts 'moaning' female Labour MPs over Burnham jobs 'quota'
Kemi Badenoch has told Labour women to earn a job in Andy Burnham's Cabinet instead of demanding they are handed jobs because of their gender.
The Tory leader lashed out today amid reports that female MPs are demanding the de-facto new prime minister introduce a 50:50 gender split 'quota' in his government.
Amid reports that former foreign secretary David Miliband is being lined up to return to the role, possibly with his brother Ed as Chancellor, one female minister also complained that Burnham could not have 'more Milibands than women' in the top posts.
But in a scathing article in the Times today Mrs Badenoch told them to 'stop moaning' and get chosen on merit instead of retreating into 'more of the failed identity politics that is holding back our country'.
'There are many, many reasons why you shouldn't have any Milibands in the cabinet,' she said.
'But complaining that the boys haven't given them the right jobs or that the boys are taking all the jobs, just shows that Labour's women still don't get it.'
The idea of quotas was also attacked by Baroness Jacqui Smith, Labour's Skills Minister.
Asked by Times Radio if Mr Burnham should reserve jobs for women, she said: 'No, I think what Andy Burnham should be doing is building the very best team around him to change this country.'
A letter written by the Women's Parliamentary Labour Party has called on Mr Burnham to ensure a 50:50 split between men and women in government jobs
Amid reports that former foreign secretary David Miliband (above, right, in 2010) is being lined up to return to the role, possibly with his brother Ed as Chancellor, one female minister complained that Burnham could not have 'more Milibands than women' in the top posts
But Mrs Badenoch told them to pipe down and get chosen on merit instead of retreating into 'more of the failed identity politics that is holding back our country'
A letter written by the Women's Parliamentary Labour Party and seen by the BBC has called on Mr Burnham to ensure a 50:50 split between men and women in government jobs after he succeeds Sir Keir Starmer.
'We are asking you to demonstrate this change from day one and address the toxicity and misogyny within our own party and government,' it said.
Labour has never had a female leader, while the Conservatives have had three, and Mrs Badenoch urged the government to follow its meritocratic example.
'If you run a meritocracy, then you do not have to worry about jobs for the boys,' she wrote.
'Every woman who is a Conservative MP, every woman who has ever won the leadership, has had to fight to get where she is.
'By contrast, Labour women are demanding guarantees from Burnham. But the truth is he doesn't have to give any guarantees.
'If none of Labour's women are prepared to get their hands dirty and challenge him for the leadership, their demands are toothless.'
'In fact, it's quite revealing that the women's parliamentary Labour Party has written to Burnham asking him to commit himself to at least 50 per cent female ministers.
'This has nothing to do with meritocracy. It is yet more of the failed identity politics that is holding back our country.'
