Apple’s Siri AI Faces Memory Challenges Amid Price Surge
Apple’s new Siri AI, which enhances user interaction with advanced features, requires 12 GB of DRAM memory to function optimally. However, the base model of the iPhone 17 comes with only 8 GB, limiting access to these features. The surge in global memory chip prices, rising up to 90% in early 2023, exacerbates this situation for Apple, projecting higher costs for production amidst tight supply and rising demand.
Apple’s CFO Kevan Parekh noted that memory costs impacted their product gross margins in Q2, with CEO Tim Cook indicating expectations of significantly higher memory costs in the upcoming quarter. Although Apple can mitigate some costs with existing inventory and bulk purchasing advantages, the ongoing challenges necessitate strategic price adjustments for their high-end devices to maintain profit margins.
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