Storage crisis: Supplier counters Apple's criticism Apfelpatient

Apple blames memory manufacturers for today's price increases – but now there's pushback from precisely that direction. A senior manager at chipmaker Micron suggests that Apple's aggressive purchasing policies have exacerbated the current shortage. Against this backdrop is a record-breaking quarter, demonstrating just how drastically the situation has changed for the memory industry.

On the same day that Apple raised prices for Macs, iPads, and other products, one of its suppliers offered a remarkable perspective. While Apple CEO Tim Cook cited increased memory costs as the reason for the price hikes, memory manufacturer Micron sees the causes elsewhere entirely – pointing to the past behavior of major customers.

A record quarter for Micron

The comments come after an exceptionally strong quarter. Micron reported a 346 percent jump in revenue and a gross margin approaching 85 percent. The company also projected revenue for the current quarter that would exceed market expectations. The stock rose 15 percent in after-hours trading and held onto those gains, while the rest of the chip sector fluctuated. The figures illustrate just how much memory manufacturers are currently benefiting from the very shortage that is driving up prices for Apple.

Cook's view: Storage prices are to blame

Apple CEO Tim Cook had clearly outlined the situation just over a week earlier. According to him, a tight supply of devices was meeting high demand, while memory manufacturers were passing on significant price increases. For devices to remain affordable for end customers, memory prices and availability would have to stabilize at a reasonable level. Cook had already indicated that Apple would ultimately have to raise prices.

Micron's counter-statement

Micron manager Sumit Sadana paints a different picture. In an interview with the Wall Street Journal Without explicitly naming Apple, he referred to the previous period of weakness in the memory market, during which Micron's gross profits slipped into negative territory. Investments were also lacking at that time because some customers consistently exploited the low prices. These customers were told at the time that their aggressive pricing strategy was "not constructive." Many industry investments were halted in 2023 due to poor prices and slim margins – an oversight that is now reflected in the current shortage.

Two interpretations of a crisis

This presents two opposing narratives: Apple sees itself as suffering from rising memory prices, while Micron points to years of price pressure that hampered investment. This doesn't necessarily have to be a contradiction – memory markets are historically highly cyclical, and periods of oversupply and dumping prices are regularly followed by shortages. For Apple customers, the question of blame is ultimately secondary. What matters is that the memory crisis is noticeably driving prices up – and no quick end is in sight. The fact that the ongoing shortage has already forced Apple to make cuts to higher-end memory options demonstrates how real the impact is. (Image: Shutterstock / emasali stock)