TLDR
- Apple implemented price hikes of up to $300 on MacBooks and iPads, citing memory chip supplier costs
- Tim Cook described the price adjustments as “unavoidable” and labeled the current situation “unsustainable”
- Micron’s Chief Business Officer indicated that aggressive purchasing tactics in 2023 contributed to today’s shortage
- Micron reported 345.7% revenue growth while Apple’s shares dropped over 6% on the same trading day
- By 2027, memory chips could account for 45% of iPhone manufacturing costs, according to JPMorgan projections
A public dispute has erupted between Apple and Micron regarding a memory chip supply crunch that’s driving up costs for consumers purchasing laptops and tablets.
Apple Implements Price Hikes, Targets Chip Manufacturers
On June 25, Apple unveiled price adjustments spanning its entire MacBook and iPad portfolio, alongside Apple TV, HomePod, and Vision Pro products. Certain MacBook models saw increases reaching $300. The entry-level MacBook Neo jumped $100 to reach $699.
In comments to The Wall Street Journal, Apple CEO Tim Cook characterized the price adjustments as “unavoidable.” He attributed the increases to memory chip manufacturers transferring substantial cost increases during a period of strong consumer demand.
According to Apple, the expansion of AI data centers generated an “extraordinary surge” in requirements for memory and storage components. The company stated it has never witnessed component pricing escalate so dramatically in such a compressed timeframe.
The affected product models received no upgrades to storage capacity or memory specifications. Customers are now paying premium prices for identical hardware configurations.
Apple projected its June-quarter gross margin to land between 47.5% and 48.5%, representing a decline from the 49.3% recorded one year prior. Product margin decreased to 38.7% during the March quarter, down from 40.7% in the previous quarter.
Micron Counters the Narrative
Just hours ahead of Apple’s price announcement, Micron Chief Business Officer Sumit Sadana presented an alternative perspective to The Wall Street Journal.
While avoiding direct references to Apple, Sadana explained that aggressive purchasing behavior drove memory pricing to unsustainable lows throughout the 2023 industry correction. This devastated supplier profit margins precisely when capital investment was needed for new manufacturing facilities.
“We told a couple of the customers who were being very aggressive with pricing at that time that this is not constructive,” Sadana said.
Micron’s gross margin entered negative territory in 2023, bottoming out at minus 17.8% during its fiscal third quarter. Facing financial losses, memory manufacturers halted capital expenditures on new production capacity.
When AI-driven demand subsequently exploded, insufficient manufacturing infrastructure existed to satisfy market needs.
Micron reported fiscal third-quarter revenue that surged 345.7% to $41.46 billion. The company’s gross margin reached 84.6%. Stock shares climbed approximately 15% during after-hours trading.
Apple’s equity declined more than 6% to $275.15 during the same session — marking its steepest single-day decline since April 2025.
The Outlook for Future Pricing
Memory and storage components now carry price tags roughly four times higher than levels from three quarters earlier, per Counterpoint Research data. TrendForce calculations show prices increased as much as 98% during the first quarter of 2026, with projections indicating another 58% to 63% rise this quarter.
JPMorgan analysts forecast memory costs could escalate from approximately 10% to as high as 45% of Apple’s flagship iPhone bill of materials by 2027. Gartner predicts a 130% spike in combined memory and storage pricing by the close of 2026, potentially driving PC prices upward by 17% and smartphone costs up by 13%.
Constructing new semiconductor fabrication facilities requires years to complete. Near-term relief appears unlikely.
Tim Cook is scheduled to transfer the CEO position to hardware executive John Ternus on September 1, leaving his successor to navigate the ongoing cost pressures.
Tim Cook has simultaneously pursued lobbying efforts in Washington seeking authorization to procure chips from Chinese manufacturer CXMT, presenting an alternative to Micron.
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