KEY POINTS
- Apple says it will raise prices on some products because memory and storage chips have become too expensive.
- The cause is the AI boom: data centres are buying so much memory that there isn’t enough left for phones and laptops.
- That shortage gives memory makers like Micron (NASDAQ: MU) and SanDisk (NASDAQ: SNDK) strong pricing power, which is why investors are watching chip stocks closely.
- On the ASX, the standout memory play is Weebit Nano (ASX: WBT), with broader AI demand also supporting data-centre stocks.
Apple (NASDAQ: AAPL) has issued a rare warning: it will raise prices on some products because memory and storage chips have become too expensive. CEO Tim Cook told The Wall Street Journal the increases are now “unavoidable,” saying the situation had become “unsustainable.” For investors, the takeaway is clear: Apple’s pain could be a windfall for the companies that make those chips.
Why Apple Is Raising Prices
Memory and storage chips go into almost every Apple device, including iPhones, iPads and Macs. They let a device store data and run apps, and newer AI features need even more of them.
The problem is demand. AI data centres are buying enormous amounts of memory to train and run their models, and that has drained the supply left for everyday gadgets. Cook called it a “hundred-year flood”, saying he’d never seen anything like it in over 40 years.
The numbers are eye-watering. Industry researcher TechInsights estimates DRAM and NAND chip prices will have jumped more than 300% by late 2026. To protect its profit margins, Apple may need to lift the price of its upcoming iPhone 18 Pro by around US$270. Apple isn’t alone. Dell (NYSE: DELL), HP (NYSE: HPQ) and Nintendo (OTC: NTDOY) have already raised prices too.
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Why These Chip Stocks Could Benefit
When demand is high and supply is tight, the companies selling the scarce product can charge more. That is pure pricing power, and it flows straight to revenue and profit.
That’s why memory and storage names like Micron (NASDAQ: MU), Western Digital (NASDAQ: WDC), Seagate (NASDAQ: STX) and pure-play flash giant SanDisk (NASDAQ: SNDK) are in focus. Micron and SanDisk are the key ones to watch, as they make the DRAM (fast-working memory) and NAND (storage) chips in short supply. Tellingly, Micron has even stopped making some consumer memory products to focus on higher-paying AI customers. When a supplier can pick and choose its buyers, you know the pricing power is real.
What It Means for ASX Investors
Australia has no Micron-sized memory maker, but the trend is still investable here. The clearest play is Weebit Nano (ASX: WBT), which develops next-generation ReRAM memory for embedded chips used in devices like cars, smart sensors and other connected hardware. It doesn’t make the DRAM or NAND in short supply, so it won’t ride the price spike directly. But a lasting shortage strengthens the long-term case for cheaper, more efficient alternative architectures, which is exactly Weebit’s pitch for next-gen embedded chips.
The same AI demand also supports ASX data-centre names like NextDC (ASX: NXT) and DXN (ASX: DXN), which house the servers driving all this memory buying.
Investor Takeaway
For chip investors, the message is upbeat: strong demand and rising prices point to fatter margins for memory makers. For Apple investors, it’s more balanced. Higher prices protect margins, but risk slowing sales if customers baulk.
Watch three things: whether memory prices keep rising, whether shoppers accept dearer Apple gear, and whether AI spending stays hot. The simple truth is that memory chips have suddenly become very valuable, and the market is only starting to price it in.
