Apple Inc. (NASDAQ:AAPL) CEO Tim Cook says price increases on the iPhone and other devices are now “unavoidable,” as a historic memory chip shortage eats into the company’s profit margins.

Cook told the Wall Street Journal that surging DRAM and storage prices have made the situation “unsustainable,” calling the cost swing a “100-year flood” he had not seen in over 40 years in the supply chain.

A Squeeze Far Bigger Than Apple

The pain is not Apple’s alone.

On June 3, nine trade groups spanning retail, autos, telecom and medical devices wrote to Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick, warning that AI data centers are monopolizing memory supply and driving sustained consumer price increases.

Data centers may consume up to 70% of the world’s high-end memory output in 2026, according to research firm IDC.

Bettors Don’t See A Comeback

Traders are not pricing an Apple rebound.

On Polymarket, Nvidia Corp. (NASDAQ:NVDA) holds a 71% chance of finishing 2026 as the world’s most valuable company, with Alphabet Inc. (NASDAQ:GOOGL) at 15% and Apple at 10%.

The contract has drawn about 3 million dollars in volume.

The market caps tell the same story. Nvidia sits near $4.9 trillion, while Alphabet and Apple battle around $4.4 trillion. Apple last held the crown in early 2025, before tariff turmoil and the AI trade knocked it down the rankings.

Nvidia’s split-adjusted shares traded near $15 in January 2023.

A new Kalshi market on which company first ships a fully AI-generated scripted series before 2027 puts Apple last at 6%, behind Amazon, Disney and Netflix, a sign traders see it trailing rivals in the AI race.

The Math Behind The Price Hikes

The DRAM in an iPhone Pro may jump from about $39 to $145, with storage rising from roughly $13 to $51, according to research firm TechInsights. That could push the starting price to $1,299, from $1,099.

The squeeze will soon belong to someone else. Cook becomes executive chairman on Sept. 1, handing the company to hardware chief John Ternus, whose engineering background may sharpen Apple’s focus on its devices.

A Polymarket contract gives a foldable iPhone a 79% chance of arriving before 2027, likely this fall, in what would be Apple’s first foldable and one of its priciest phones yet.

The same demand crushing Apple has been a windfall for suppliers. Micron Technology Inc. (NASDAQ:MU) has climbed more than 800% off its 52-week low.

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