Micron's stock fell sharply after Apple CEO Tim Cook revealed the company is actively hunting for new memory chip suppliers. The move comes as DRAM prices soared about 60% and NAND around 70% this year, pushing Apple's production costs higher.
Cook called the current memory market a “100-year flood,” signaling unprecedented price spikes that have forced Apple to raise retail prices on key products by up to 20%. This marks a rare shift for Apple, which has usually absorbed cost increases instead of passing them on to customers.
The spike in memory prices stems from intense demand for high-bandwidth chips fueled by AI applications. Industry giants including Micron, Samsung, and SK Hynix have prioritized AI contracts, squeezing supply available for consumer electronics. In response, Apple is exploring partnerships with Chinese manufacturers CXMT and YMTC, especially for products sold outside the US, while lobbying for relaxed export controls.
Micron CEO Sanjay Mehrotra pushed back, accusing major buyers like Apple of stockpiling cheap memory during downturns and now complaining as prices climb. This tension highlights growing supply chain complexities amid the chip shortage.
