Apple Warns of '100-Year Flood' in Memory Pricing Amid AI Demand

Apple CEO Tim Cook has warned of a '100-year flood' in memory pricing, which is affecting the company's products and profits. In his last earnings call as CEO, Cook described the situation as an unprecedented surge in memory costs driven by AI data-center demand.

The three main suppliers of DRAM, SK Hynix, Samsung, and Micron, have largely sold out their premium AI memory capacity, leading to a shortage that is driving up prices. Apple has already raised prices on its Macs and iPads due to the increased costs, and Cook expects memory prices to continue rising in the current quarter.

Cook called for more competition in the memory supply chain, saying 'primarily the DRAM market has three suppliers' and suggesting that the industry needs to expand beyond them. Apple's stock fell sharply after the earnings call as investors processed the supply constraint warnings and below-consensus Q4 outlook.