Like other hardware manufacturers, Apple is facing the impact of a surge in global memory prices triggered by the rapid development of generative artificial intelligence.
According to the surge in memory prices, which Apple Chief Executive Officer (CEO) Tim Cook called a "hundred-year flood," has significantly impacted the production costs of iPhones, MacBooks, and other devices.
In its latest financial report, Apple recorded the quarter ending in June 2026 as the best quarter in the company's history with iPhone sales growing 22 percent year-on-year and Mac computer sales increasing 29 percent compared to the same period last year.
However, companies are bracing for the impact of the memory shortage, dubbed RAMageddon, which is expected to worsen.
The company faces a major challenge in securing the advanced memory nodes used in Apple silicon chips, which power the A-Series and M-Series processors used in iPhones and Macs.
"We continue to expect high levels of demand. However, with the lack of flexibility in the supply chain, we expect the impact of supply constraints to increase significantly sequentially," Tim Cook said on Apple's quarterly earnings call.
"We're currently seeing some very significant constraints with limited flexibility in the supply chain to address them," he said.
