Tim Cook is about to hand the reins of Apple (NASDAQ: AAPL) to incoming CEO John Ternus, but he left shareholders with a bit of bad news on his last earnings call, saying the company is currently facing a "100-year flood"-level event when it comes to memory prices.
Cook wasn't being dramatic. Some memory prices skyrocketed by 90% in the first quarter of 2026 alone as tech companies rushed to buy memory for devices and data centers. The shortage caused prices to spike, and it could be years before the supply-and-demand imbalance is resolved.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
I'm an Apple shareholder, and I've been keeping a close eye on the company's response to rising memory costs. Here's why I don't think it's time to worry just yet.
Apple often commands better pricing on the device components (including memory) it purchases from suppliers because of its large order volume. But even Apple hasn't been able to weather the current memory crunch without adjusting pricing strategies.

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