Apple warns of ‘unprecedented’ rise in memory chip prices

iPhone maker says decision to raise prices has offset some of impact, as revenues are stronger than expected

Apple has warned of an “unprecedented” rise in memory chip prices, as it battles with datacentres to lay its hands on supplies.

The iPhone maker’s shares fell in after-hours trading after it told investors that the higher prices will eat into its profit margins.

“What we’re seeing with memory pricing right now is unprecedented,” John Ternus, Apple’s new chief executive, told a conference call on Monday, predicting that memory costs in the fourth quarter of this year would be even higher than in the previous three months.