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Apple warns memory prices, constraints to keep rising
['Antone Gonsalves']
Supply Chain Dive - Latest News
Please let us know if you have feedbackDive Brief:Apple expects supply constraints on advanced semiconductors — especially memory — to intensify quarter to quarter, executives said on a July 31 earnings call.
Higher memory costs led Apple to raise prices recently, and the supply constraints sparked a multiyear deal with longtime supplier Broadcom to develop U.S.-made custom silicon for multiple generations of Apple products.
In the previous quarter, Apple's supply constraints mainly hit the Mac and — to a lesser extent — the iPhone and iPad, Cook said.
The memory crunch is partly driven by the fact that the dynamic random access memory market has only three primary suppliers, Cook said.
This year, Apple plans to open an Advanced Manufacturing Center at its Houston facility, where it currently assembles AI servers, Cook said.