Why Your Next iPhone Costs More
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That new iPhone is gonna cost you. Yeah, Tim Cook has come out and he’s he said, hey, listen, guys, we gotta raise our prices. We gotta raise our prices, and it’s not just iPhones. It’s gonna be the Macs, it’s gonna be the iPads, everything across the board. I know you’re getting to that time of year. It’s September, it’s new iPhone time. mine’s a couple years old. Batteries starting to, you know, not work as as great.
you know, considering getting it. Not to mention, aren’t they coming out with that new foldable iPhone this year? Anyway, neither here nor there. Tim Cook has come out and said, hey, listen, our costs are going up. They’re going up. We’re doing everything and anything we can to keep our costs down, but there’s quite frankly, there’s nothing we can do about it. Apple doesn’t like messing around with its profit margins. And for an iPhone, it’s about forty seven percent. Nice margin, but he doesn’t want to mess with it. And I get it, he doesn’t have to.
Say a lot of things about Tim Cook. And I’ve been critical of him to the degree that I don’t know what they’re doing at that big building in Cupertino that they put up there. I I really don’t, aside from counting money. But I wish we had a little bit more innovation. I do miss, like many people do. I I I miss the the exciting you know, Apple press conferences with Steve Jobs and him coming out, and one more thing.
Haven’t really seen that when it comes to innovation. It’s like great. Okay, we got some new emojis. we got that little bit better of a camera. Whatever. Nothing really knocking it out of the park. But you put that aside, Tim Cook is a master when it comes to running a business. A master. He is the like the CFO of CEOs, if you will, as far as supply chains are concerned. He did a masterful job.
during COVID, they did masterful job in the lead up to Liberation Day and how he handled that. Excellent with the supply chains. But even they cannot fight the AI infrastructure fight. Ongoing conversation taking place in this country. Electricity costs are going up because of data centers. What are my water costs going to be? What’s the environmental concerns? And I get it with data centers, but you know what? They’re gobbling up memory chips. They’re gobbling them up.
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funny i i just bought just bought a needed a new laptop needed my got my new mac laptop here and i actually saw it in in what the upgrade costs were for memory and it was significant and i actually this is just what three four weeks ago and i was like wow they he said yeah you know that they didn’t really recognize it tim didn’t make the announcement he said yeah memory prices are going up and
You know, you really don’t need this. This is what you need. Okay. So this is you know what I got for my Mac. But yeah, that that’s how much that’s how these these memory chips are being gobbled up by AI. The only way around it, which I don’t see happening, is you’d have to go to Chinese manufacturers. And I don’t I don’t think that our government’s going to allow that. Security concerns, whatever it may be. So again.
It is what it is at this point in time. iPhone’s gonna be more expensive, Mac’s gonna be more expensive, and again, this is costs are gonna go through. I just want to remind everybody: don’t look at this. Again, this is kind of a teachable moment as well. It’s not inflationary. Inflation is a monetary issue. This is not a monetary issue, my friends. This is a supply and demand issue. Watchdog on wallstreet.com.
