Apple CEO Tim Cook stated that high memory costs will significantly impact the company's business in coming quarters. He highlighted supply constraints during the latest earnings call despite strong revenue growth. The issue stems from skyrocketing RAM prices driven by AI data center demand.
During Apple's recent earnings call, as reported by CNBC, CEO Tim Cook addressed analysts about supply constraints in the last quarter. Apple's revenue grew 17 percent in the second quarter, exceeding guidance despite these challenges, with the impact described as minimal so far. Cook noted, however, that memory costs will drive an increasing impact on the business, and the company will continue to evaluate this situation. He warned of a big impact on several Mac models for the quarter ending in June due to continued high demand for memory and significantly higher costs ahead. This comes amid a broader industry crunch, where RAM prices have skyrocketed over recent months. Shops stopped printing price labels in November last year to adjust prices daily, leading to shortages. The crisis has affected gaming hardware too: Xbox head Asha Sharma admitted in April it could raise prices and limit stock for the next-gen Project Helix console. Valve revised plans for its Steam Machine and Steam Frame in February due to global memory and storage shortages from AI data center demand. Analyst Jake Behan, head of capital markets at Direxion, said Apple's situation shows that even top operators cannot fully escape the memory squeeze. He described Cook's warning as evidence of how real the AI-driven supply crunch has become for the entire industry.
