Tangent
Prices for consumer electronic products like video game consoles and smartphones have been surging for months due to increased prices for memory chips. The price crunch is primarily caused by high demand for those chips by AI companies, which require massive amounts of memory to power servers in data centers.
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Crucial Quote
“There’s less supply at a time when consumers want devices and the memory guys are passing along huge price increases,” Cook told the Journal on Wednesday, insisting that the company needed prices to settle at “reasonable levels for consumer products.”
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Key Background
Apple already raised prices for its Macbook laptop offerings by as much as $400 in March. During Apple’s second quarter earnings call in April, Cook said the company was able to “partially offset” rising inventory cost during the first quarter of the year, but expected the price crunch would “drive an increasing impact on our business” starting in June.
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