Fruity cargo cult Apple’s supreme dalek Tim Cook has warned that looming price rises could whack iPhone manufacturing.
Cook said Job’s Mob expects “significantly higher” memory costs in the June quarter and beyond.
That price hike could arrive alongside another unexpected rise in smartphone component costs. For Job’s Mob, that means iPhone manufacturing and other product lines are suddenly looking a bit less smug.
The obvious problem is where Job’s Mob goes when every supplier wants more cash. It can squeeze partners, eat the cost or pass the pain to punters who already paid silly money for glass rectangles.
For now, Cook said Apple has partly dodged the impact because it is still selling inventory it had stockpiled. The outfit often does this, using its gigantic cash pile, such as when President Trump’s tariffs threatened its bottom line.
The harder bit comes when that inventory dries up, and costs keep climbing. Cook said Apple b is still evaluating the situation and considering a range of options.
One option may be to absorb costs for a while and grab more market share worldwide. If rivals are forced to raise prices or get squeezed, Job’s Mob can use its financial bulk to take the hit. Keeping prices steady could let it nick share while everyone else explains why their phones now cost even more.
However, that is pretty much what Apple fanboys want and going through the Tame Apple Press this morning, there are a number of them who refuse to believe that Jobs’s Mob would pass on costs to them. After all, Apple must have a cunning plan that means that Fanboys are protected from steep costs, right?
Phone Arena’s Abdullah Asim said: “I, personally, am inclined to believe that Apple will choose to absorb some or all of the increased costs for two or three years to capture more market share. One claim from a semiconductor expert even alleges that Apple is deliberately sabotaging competitors to do this.”
