Tim Cook said Apple will pay more for memory in the September quarter amid surging DRAM prices driven by AI demand.
Apple CEO Tim Cook indicated the company will face higher memory costs in the September-ending quarter, citing a “hundred-year flood” in pricing. He expects memory prices to continue rising beyond the quarter, benefiting DRAM suppliers.
DRAM prices are climbing due to strong demand for high bandwidth memory (HBM) used in AI chips. The AI infrastructure build-out and increased inference workloads are tightening supply, with major producers prioritizing HBM production.
Apple sought to source DRAM from Chinese firms to ease costs, but U.S. officials may block the move. The market is dominated by Micron (MU), SK Hynix (SKHY), and Samsung, all ramping up HBM output.