Apple warns of potential device price hikes as AI-driven chip costs surge

Apple CEO Tim Cook told The Wall Street Journal that the company is facing sharp increases in DRAM and NAND prices as AI companies buy up large volumes of memory and storage chips, tightening supply. Cook said Apple has tried to absorb the increases but can no longer fully shield customers, putting products such as the iPhone Pro under price pressure. TechInsights estimates Apple would need to add about $270 to the next iPhone Pro model to maintain profit margins. After the report, Apple shares fell 1.10% to $295.95.