Woofun AI reports that Apple CEO Tim Cook labeled current memory price surges a 'once-in-a-century flood,' a scenario unseen in his 40-year career, prompting immediate price hikes for Mac, iPad, HomePod, Apple TV, and Vision Pro devices. An Apple spokesperson confirmed that the rapid expansion of AI data centers has driven a sharp increase in demand for memory and storage chips, forcing the company to abandon previous cost-absorption strategies.

Specific adjustments in mainland China include price increases of 900 to 3,500 yuan for Macs, 800 to 1,800 yuan for iPads, and a flat 2,000 yuan hike for the Vision Pro. The market reacted swiftly, with Apple's stock falling 6.1% following the announcement, marking its largest single-day drop since April 2025. This volatility contrasts sharply with the performance of memory supplier Micron, which reported a gross margin of 84.9% and quadrupled revenue, sending its stock up 16% after hours.

Micron executives stated that tight supply conditions will persist until after 2027, attributing the shortage to aggressive price-cutting tactics by major customers during previous downturns that impeded necessary capital investment.

Woofun AI data shows that while Apple has delayed iPhone price hikes to stabilize demand for its core product line, the device remains less affected by memory shortages compared to Macs. Analysts expect iPhone prices to rise in the upcoming autumn cycle, potentially driven by upgrades to 12GB of RAM for Apple Intelligence features and the launch of a foldable iPhone model priced above $2,000.

Market research firm IDC predicts the average selling price of Apple smartphones will rise by 12% this year, reflecting broader industry pressures. Microsoft also announced price increases for Xbox consoles starting August 1, citing more than a 2.5-fold increase in storage and memory prices. Industry experts, including Gene Munster of Deepwater Management, argue that demand for Apple products remains inelastic due to ecosystem lock-in, suggesting these hikes will have limited impact on sales volume.

Concerns remain for commoditized products like HomePod and Apple TV, which may face competition from cheaper alternatives as margins compress. The convergence of AI-driven demand and constrained supply chains signals a structural shift where hardware pricing power is increasingly dictated by component availability rather than brand loyalty alone.