A global memory chip shortage is impacting the smartphone market and forcing Apple Inc. to evaluate its iPhone 17 pricing strategy. The company must decide whether to raise retail prices to offset rising component costs or absorb the expenses at the expense of profit margins.
CEO Tim Cook addressed the shortage during a recent earnings call and projected a sharp increase in memory chip prices. Cook stated that Apple maintains various levers and strategic options to manage these rising costs.
The decision carries significant competitive implications. Maintaining current price points could allow Apple to capture market share from competitors more severely impacted by the shortage.