Apple CEO Tim Cook said Friday that a global memory shortage will increase costs for the company in upcoming quarters [1, 2].
This warning comes as Apple navigates a volatile hardware market where the components necessary for high-performance devices are becoming more expensive and scarce. Because memory is a fundamental building block for iPhones and Macs, these rising costs could pressure profit margins, or lead to higher consumer prices for future hardware releases [3].
During the Q1 2026 earnings call, Cook said the company is facing a worsening memory crunch [1, 2]. He said memory costs are set to be "significantly higher" in the June quarter [2]. To mitigate the impact, Cook said the company will look at a range of options [1].
Analysts and reports suggest the shortage is fueled by two primary drivers. Some reports attribute the surging costs to the global AI boom, which has spiked demand for high-capacity memory [3]. Other reports point to heightened U.S.-China tensions as a primary factor destabilizing the supply chain [4].
Despite these headwinds, Apple reported strong recent financial performance. The company delivered its strongest March quarter to date [3]. However, the ongoing memory crunch remains a persistent concern for the company's near-term financial outlook [2].
Separately, some analysts have noted that Cook is expected to step down from his role as CEO on Sept. 1, 2026 [5].
“Memory costs are set to be "significantly higher" in the June quarter”
The convergence of AI-driven demand and geopolitical friction between the US and China is creating a supply-side bottleneck for critical semiconductors. For Apple, this means the cost of goods sold is likely to rise, which may force the company to either absorb the costs—lowering its margins—or pass the increase to consumers via higher retail prices for the iPhone 18 series and other upcoming hardware.
