Tim Cook says "a 100-year flood on the memory pricing" amid sharp rise in memory costs

During Apple’s July 30 earnings call, Tim Cook told analysts that memory prices are rising sharply, a cost problem he discussed as Apple tries to protect profitability. The remarks came as Apple, whose new chief executive is John Ternus, is narrowing its iPhone 18 lineup toward the Pro and Pro Max models, according to CNBC, and unveiling the folding iPhone Duo, which pre-event reports placed between $2,000 and $3,000. Apple said its product gross margin was 40.1%, with memory costs accounting for more than the full quarter-over-quarter change in company gross margin, and it expects higher memory expenses in the September quarter. Cook also said Apple had been hesitant about price increases and takes a long-term view on pricing. The shift matters because it favors higher-priced devices and could narrow the customer base that feeds Apple’s services growth.