Apple is bracing for a significant hit from rising memory costs. CEO Tim Cook confirmed the company is expecting "significantly higher memory costs" in the June quarter, with the impact only intensifying beyond that. The company already felt pressure during the March quarter, and the situation is projected to worsen as the year progresses.

The cost surge stems from AI server demand draining global memory supplies. Chip manufacturers are prioritizing memory for AI infrastructure over consumer devices, creating tight supply conditions. Cook revealed Apple has been partially mitigating the impact by selling through existing stockpiled inventory, but those reserves are finite.

As those supplies dwindle, Apple's costs will climb further. Cook stated Apple is exploring a "range of options" and "continuing to evaluate" the situation, though he declined to specify any concrete strategies. The memory price increases could ultimately affect product pricing or profit margins for Apple's devices.