Apple CEO Tim Cook is warning that AI-driven price increases for key components are now unavoidable, according to Tom's Hardware.
The issue centers on two types of memory chips: DRAM and NAND. DRAM is the short-term working memory that lets devices run apps smoothly, while NAND is the flash storage that holds your photos, files, and operating system. Both are found in nearly every phone, laptop, and tablet Apple sells.
Prices for these chips have been climbing as the AI boom drives enormous demand. Companies building data centers to power AI services are buying up vast quantities of memory, tightening supply and pushing costs higher for everyone else, including consumer electronics makers like Apple.
Tom's Hardware reports that Cook says Apple can no longer 'shield' its customers from these increases. According to the same report, Cook acknowledged the company is 'trying its best' but described the broader pricing environment as one where 'the situation has become unsustainable.'
The comments are notable because Apple has historically absorbed component cost swings to keep its product prices stable. Cook's framing suggests that buffer may be running out, at least for memory.
Why it matters: if a company with Apple's scale and supplier leverage says it can't keep AI-related chip costs off your bill, it's an early signal that the price of everyday electronics could rise across the industry.