Apple CEO Tim Cook signaled that price increases for its products are "unavoidable" due to skyrocketing costs for memory and storage chips. In a June 18th interview, Cook noted that it has become "unsustainable" for Apple to continue absorbing the surging component costs, which are being driven by massive demand from the AI sector for DRAM and NAND chips.
Following the news, Gene Munster, Managing Partner of Deepwater Asset Management, stated on CNBC that Apple's admission is a powerful endorsement for memory suppliers like Micron. He argued that when an operationally disciplined company like Apple is forced to pass on costs, it confirms the significant pricing power of chipmakers and reinforces that stocks like Micron have "more room to run."