On the pricing front, you know, we reluctantly raised prices. I would say we did it because we’re in what I would characterize as a 100-year flood on memory pricing with exponential increases in memory prices, so that was the rationale for it.
When asked whether Apple is aiming to protect gross profit dollars or product gross margins when considering pricing increases, Cook said it’s multifactorial.
In terms of our philosophy on dollars or percentages, we look at units, revenue, and margin, and then come to a business judgment as to how to handle that, and so it’s not a mathematical formula that gets us to a specific result, or just looking at one dimension of that. We look at all three dimensions and think about it over the long term instead of, you know, a 90-day clock.
Cook did not comment on whether Apple plans to raise iPhone prices when the iPhone 18 Pro models and first foldable launch this September, but multiple analysts believe prices will go up.
Cook said Apple is expecting to pay higher memory costs in the September quarter, though Apple will be able to partially offset it with lower costs on some non-memory components and a stockpile of inventory.
This article, “Tim Cook: Apple ‘Reluctantly Raised Prices’ Due to ‘100-Year Flood on Memory Pricing’” first appeared on MacRumors.com
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