Apple plans to raise prices due to a surge in the costs of memory and storage chips, CEO Tim Cook told The Wall Street Journal (WSJ) in a report posted Wednesday (June 17).
Apple's Tim Cook warned of price hikes due to a global memory chip shortage, which is spiking costs. Rising demand for memory chips for AI models is squeezing supplies for everyday gadgets like phones.
Apple plans to hike its prices, citing the rising costs of storage chips and memory, CEO Tim Cook says.
Tech giants are gobbling up memory chips for AI servers, leaving Apple with soaring component costs that Tim Cook says will inevitably be passed on to consumers.
Plus, more Fed officials signal a rate increase is coming soon, and pool owners feel blue about the color blue.
The memory-chip crunch is pushing up prices for all electronics. Even Apple, which dominates the supply chain, isn't spared.
The CEO tells the Journal in an exclusive interview that soaring costs make price increases “unavoidable.”
June is a natural moment for mid-year reflection. Short-term traders are squaring quarterly books, but long-term investors should be doing something different: Stepping back to ask which businesses have already produced multi-decade compounding, and whether the moats that drove those returns are still intact today.
Apple benefits from strong iPhone demand, record Services growth and expanding AI innovation, reinforcing its long-term growth prospects.
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Apple Inc. remains a Strong Buy as the recent 8% post-WWDC selloff reflects investor impatience, not fundamental weakness. AAPL now trades at only a modest premium to peers, with a forward P/E of 34.17x and a PEG of 1.26x, suggesting potential undervaluation. Siri AI, powered by Gemini, will reach 2.5 billion devices, enhancing Services margins, though regulatory hurdles in Europe and China limit initial impact.
Apple's plan to change a privacy feature that lets paying customers hide their real email addresses when creating online accounts could make it easier for apps and websites to block anonymous sign-ups.