Micron Executive Sumit Sadana Tells Tim Cook to Stop Hitting Himself
Apple raised prices on Macs and iPads by $200 or more on some models. The price hikes came a day after Micron Technology reported strong quarterly earnings with gross profit margins above 80%. Micron Chief Business Officer Sumit Sadana suggested that aggressive pricing by certain customers during the memory market's 2023 downturn discouraged industry investments, indirectly criticizing Apple.
Background
- Apple recently raised prices on Macs and iPads by $200 or more on some models. The WSJ reported this was partly because memory (RAM/storage) costs have soared — Micron, the major US memory chip maker, is now enjoying over 80% gross profit margins after a brutal downturn in 2023.<br>- Sumit Sadana, Micron's Chief Business Officer, implied in an interview that Apple was one of the "aggressive" customers that squeezed Micron on price during the 2023 memory glut, when Micron was barely breaking even. His point: by refusing to pay more during the trough, Apple and others discouraged investment in new production capacity, which is now contributing to the tight supply and high prices Apple itself is complaining about.<br>- Daring Fireball's John Gruber is mocking Sadana's tone as shortsighted — essentially accusing Micron of telling Apple "you brought this on yourself" for negotiating hard when the chipmaker was weak, while now enjoying what Gruber suspects won't last forever.