AI demand drove chip costs up 4x, Tim Cook says
If you've noticed your favorite tech gadgets costing more lately, you're not imagining things.
The surge in artificial intelligence has pushed up the price of memory and storage chips, essential parts for phones, laptops, and gaming consoles.
Apple CEO Tim Cook admits chip costs "have risen 4x since last year," making price increases pretty much unavoidable.
Memory chips now make up a bigger chunk of smartphone production costs as AI companies scoop them up to power their models.
Micron contract prices soared to $1,300
Chip makers like SK Hynix, Samsung, and Micron are struggling to keep pace with demand; Micron's contract prices for data-center memory chips soared from $350 to $1,300 in just a year.
In India, a weaker rupee is making imported chips even pricier. Nearly half (48%) of Indian buyers are putting off new smartphone purchases, while 6% are switching to secondhand devices because of rising costs linked to AI-driven chip demand.