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As the generative AI boom drives steep demand for hardware components, Apple and other hardware makers are facing what outgoing CEO Tim Cook<\/a> calls \u201ca hundred-year flood [on] memory pricing,\u201d which is severely impacting the cost of producing iPhones, MacBooks, and other devices.<\/p>\n Apple described<\/a> its recent earnings report<\/a> as its \u201cstrongest June quarter ever,\u201d with iPhone and Mac sales performing better than expected, growing 22% and 29%, respectively, year-over-year. Yet the company is bracing for memory shortages, known as RAMageddon<\/a>, to get even worse. Apple\u2019s biggest challenge is securing the advanced memory nodes used in its Apple silicon chips, which power the A-Series and M-Series processors used in iPhones and Macs.<\/p>\n \u201cWe continue to expect high levels of demand. However, with less flexibility in supply chain, we expect the impact from the supply constraints to increase significantly sequentially,\u201d Cook said on Apple\u2019s quarterly earnings call. \u201cWe\u2019re seeing some very significant constraints currently with limited flexibility in the supply chain to remedy it.\u201d<\/p>\n Apple is evidently worried enough about supply shortages that it reported $11.1 billion<\/a> in inventory, nearly double the $5.7 billion it reported last September. This marks a break from Cook\u2019s long-held supply chain approach, which has emphasized minimizing<\/a> how much inventory Apple has on hand.<\/p>\n These constraints led Apple to \u201creluctantly\u201d raise the price<\/a> of Macs and iPads last month, Cook added. Other companies that have raised hardware prices include Meta<\/a>, Samsung<\/a>,\u00a0Microsoft<\/a>, and\u00a0Sony<\/a>.<\/p>\n \u201cWe\u2019re going to be scrambling on the supply side, essentially,\u201d Cook said.<\/p>\n For the upcoming quarter, Apple is predicting revenue growth between 9% and 11% year-over-year. But in the last several quarters, Apple has maintained about 16% year-over-year growth. Of course, that worries investors \u2014 Apple stock dropped 6%<\/a> in after-hours trading.<\/p>\n When Senior VP of Hardware Engineering John Ternus steps into the CEO role in September, the company could be facing a rough patch, but at least Apple isn\u2019t alone in its supply struggles.<\/p>\n<\/div>\n When you purchase through links in our articles, we may earn a small commission<\/a>. This doesn\u2019t affect our editorial independence.<\/em><\/p>\n