Apple raises Mac and iPad prices due to unprecedented memory cost inflation, while Micron benefits from the same supply crunch.
Apple Inc. shares fell 6% to near $274 after CEO Tim Cook attributed Mac and iPad price increases to a “hundred-year flood” in memory costs. The company left iPhone pricing unchanged despite the surge in component expenses.
Cook described the memory shortage as unprecedented in his 40-year career, calling the price hikes “unavoidable.” Meanwhile, Micron Technology reported a gross margin jump from 38% to 85% year-over-year, with Q4 revenue guided to $50 billion, highlighting the supply chain disparity.
The divergence reflects broader market dynamics, as Micron shares surged 16% on the same memory crunch that pressured Apple. Cook also urged U.S. policymakers to ease restrictions on Chinese memory suppliers to mitigate costs.