Why iPhones Will Probably Get Even More Expensive
6/22/202618 min
Artificial intelligence is driving up the cost of the chips inside your iPhone. In an exclusive interview, Apple CEO Tim Cook warned that price increases are “unavoidable.” WSJ’s Rolfe Winkler breaks down how AI companies’ race for memory and storage has sent chip prices soaring, forcing Apple to choose between shrinking profits and charging customers more. Ryan Knutson hosts.
Further Listening:
- Tim Cook Built the Apple Empire. What’s Next for His Successor?
- The Nvidia CEO’s Quest to Sell Chips in China
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Clips
Transcript preview
First 90 secondsRyan Knutson· Host0:00
[upbeat music] The other day, our colleague Rolfe Winkler got on the phone with Tim Cook, the outgoing CEO of Apple. Cook had a message he wanted to get out. What was the bombshell that he dropped in your conversation?
Rolfe Winkler· Guest0:18
They're gonna raise prices. He told me they're gonna raise prices. [upbeat music] When I asked which devices, when, how much, "Ah, we're still working through those details," is what he told me, but, look, I would suspect soon and plenty.
Ryan Knutson· Host0:36
When the new iPhone drops in September, one analyst estimates that it could cost an extra $200 or even more.
Speaker 30:44
The two words no Apple fan wants to hear, price increase.
Ryan Knutson· Host0:48
Since Rolfe broke the news last week, customers have heard Tim Cook's message loud and clear.
Speaker 40:55
If you're thinking about buying a new Apple product, I would do that right now. Oh, your next iPhone could cost you a lot more. I'm Brian.
Rolfe Winkler· Guest1:02
Apple just announced they are doubling down on keeping people from buying iPhones in the future. What? The prices were already pretty raised.
Ryan Knutson· Host1:08
Did Tim Cook seem worried about sharing this update?
Rolfe Winkler· Guest1:15
He's always a smooth operator. He's always kind of in command and on message, right? He had a, a couple key points he wanted to make, and he made those points. Price increase is unavoidable.