Apple price increase due to chip shortage

Industry analysts have also sounded the alarm. TrendForce recently warned that laptop prices could rise by as much as 40% due to escalating memory and processor costs. The smartphone market is facing similar pressures. According to JPMorgan, memory could account for up to 45% of an iPhone’s component costs by 2027. This is a significant increase from current levels and roughly four times today’s level.

The ripple effects are already being felt across the industry. Counterpoint Research projects that global smartphone shipments will decline this year as manufacturers pass rising component costs on to consumers, dampening demand in key markets. And locally, we have already seen prices of laptops rise by as much as 20% to 30%.

Cook did not disclose which products would be affected or when the higher prices would take effect. However, the timing suggests that Apple’s September product launch event could be the first major opportunity to introduce the increases, particularly for the next-generation iPhone and Apple Watch models.

Apple has already begun making adjustments in response to the memory shortage. The company recently streamlined the RAM configurations available for the Mac mini and Mac Studio, while also discontinuing the 256GB Mac mini, moves that could help manage component allocation and production costs during the prolonged supply crunch.

Source: Wall Street Journal via 9to5Mac