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Apple's Tim Cook Says Price Increases Are 'Unavoidable'

Apple CEO Tim Cook has signaled that rising costs for memory and storage chips will likely lead to unavoidable price increases across the company's future product lineup.

Key Points

  • Apple faces higher production costs due to a global surge in demand for memory and storage chips driven by the artificial intelligence boom.
  • The upcoming iPhone 18 lineup, potentially including a foldable model priced over $2,000, is expected to launch around September.
  • John Ternus is scheduled to succeed Tim Cook as Apple CEO on September 1, coinciding with the anticipated product release window.
  • Industry analysts suggest that elevated consumer electronics pricing could persist through 2028 as supply chains struggle to meet global demand.

Why it Matters

Rising component costs reflect a broader market trend where the rapid expansion of AI infrastructure competes with consumer electronics for limited hardware resources. This shift suggests that users should prepare for higher price points on essential technology as manufacturers pass on increased supply chain expenses.
CNET Published by Corin Cesaric-Epple
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