Apple hikes Mac and iPad prices amid memory shortage

Apple is confronting a severe shortage of advanced memory chips that its outgoing CEO, Tim Cook, described as a "hundred-year flood" in pricing, a situation driven by surging demand from the artificial intelligence sector. The company reported its strongest June quarter ever, with iPhone sales up 22% and Mac sales up 29% year-over-year, but is now bracing for deeper supply constraints that are already impacting its operations and forcing price increases on consumers.

Cook, who made his final earnings call as CEO on July 31, detailed the significant challenges. He stated that demand for Apple products remains high but that supply constraints are growing, with very significant limitations currently and a limited ability to resolve them quickly. To cushion against these shortages, Apple has nearly doubled its inventory, holding $11.1 billion in components compared to $5.7 billion last September. This marks a strategic shift from Cook's longstanding playbook of minimizing on-hand inventory.

The memory crunch, often referred to within the industry as "RAMageddon," is tightening the availability of advanced nodes needed for Apple's A-Series and M-Series chips. In response, Apple...