Apple Faces '100-Year Flood' in Memory Chip Prices, Raises Device Prices

Apple CEO Tim Cook recently warned of a '100-year flood' in memory chip prices, which have surged up to 90% due to supply shortages. To protect its margins, Apple has raised device prices by over $200, and the company expects gross margins to decline slightly to 47-48% in Q4.

The shortage is causing concern among investors, but Cook's warning was not an exaggeration. Tech companies have been rushing to buy memory for devices and data centers, leading to a significant spike in prices.

Apple often commands better pricing on its device components due to its large order volume, but even the company has been affected by the shortage. The company raised prices of many of its computers and other devices in June, and it could do the same next month when the latest iPhones debut.