Apple CEO Tim Cook weighs in on upcoming disaster for iPhone

Pretty much everyone is now aware of the memory crisis threatening the entire tech industry, but apparently it’s going to get even worse. The memory shortage will worsen according to Samsung, and now Apple CEO Tim Cook has had a few words to share on the impending price increases that will impact iPhone manufacturing.

A looming disaster

According to Tim Cook, Apple is expecting “significantly higher” costs for memory in the June quarter and beyond. This impending hike in pricing might also occur alongside another, second unexpected price hike for smartphone components that is threatening to take place.

Naturally, iPhone manufacturing, as well as manufacturing for other Apple products, is at risk. Where does Apple go when it can not avoid an increase for these processes and every supplier is asking for more and more money?

Tim Cook weighs in

Currently, according to Tim Cook, Apple has been able to partially offset the impact of this crisis because it is still selling inventory that it had stockpiled. The company often does this, using its vast resources to its advantage in times of peril, like when President Trump’s tariffs threatened business.

However, as for a future plan when inventory dries up and costs keep increasing across the board? According to Cook, Apple is still evaluating the entire situation and considering a range of options.

One fascinating strategy

What Apple might end up doing is adopting a fascinating strategy that has now been mentioned twice by two separate experts. Apple might absorb costs for now in an effort to boost market share worldwide.

As competitors are priced out or forced to increase the prices of their products, Apple can use its financial leverage to simply take the brunt of the damage. If the prices of its products remain unchanged, the company could gain significant market share around the globe.

A unique opportunity for the iPhone

I, personally, am inclined to believe that Apple will choose to absorb some or all of the increased costs for two or three years to capture more market share. One claim from a semiconductor expert even alleges that Apple is deliberately sabotaging competitors to do this.

Whether or not that is true, Apple has a unique opportunity to push the iPhone in regions where you would normally be hard-pressed to see one out in public.

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