'We reluctantly raised prices': Tim Cook weighs in on hikes as Apple reports $109 billion in revenue

Apple held its third-quarter earnings call today, where the tech giant reported "record" $109 billion earnings, largely driven by a 22% increase in iPhone sales. Despite that, Apple's stock fell 8% based on missed revenue estimates in China and the company's services arm.Outgoing CEO Tim Cook, in his swan song earnings call, was also questioned by investors about the impact of the ongoing memory crisis on Apple supply and future forecasts."We reluctantly raised prices," Cook said, referring to last month's price increases that affected every Apple device except the iPhone."We did it because we’re in what I’d categorize as a 100-year flood on memory pricing," Cook continued, repeating an analogy he made a month ago.What Apple is saying about the memory crunch (Image credit: Future)During the call, Cook admitted that Apple is facing supply constrains that are affecting iPhone, Macs and iPads, primarily on Macs. Cook asserted several times that this issue was largely driven by surprising amounts of demand."We expect the impact from supply chain constraints to increase significantly [in September]"Tim Cook — CEO, AppleBoth Cook and Chief Financial Officer Kevan Parekh noted that the supply chain has become less "flexible" which was blamed on nodes for advanced SoCs and that they expected continued high levels of demand."We expect the impact from supply chain constraints to increase significantly [in September]," Cook said. In response to an investor Cook said that Apple expects to pay even more for memory through the next quarter.Get instant access to breaking news, the hottest reviews, great deals and helpful tips.Investors were only allowed two questions but nearly everyone who spoke used at least one to ask about memory and pricing. Cook repeatedly claimed that the cause of Apple supply constraints is "not a regular supply issue" and instead said it was a demand forecast issue where iPhones and Macs performed "remarkably better than we thought they would."However, "we’ve got a quarter that we’re going to be scrambling on supply side," Cook told one investor.The upcoming fourth quarter will tell us a lot about how Apple is dealing with the memory crisis. Price increases might defray rising component costs, and the new Apple Upgrade Program could help the company keep a more constant source of revenue.Apple still has the iPhone 18 series, new Macs and iPads to release and potentially more. But we're already bracing for a potential $200 price increase for the iPhone 18 Pro models. And a possible $2,500 iPhone Ultra. Follow Tom's Guide on Google News and add us as a preferred source to get our up-to-date news, analysis, and reviews in your feeds. More from Tom's GuideIs the Apple Upgrade program a good deal or a rip-off? I asked ChatGPT to crunch the numbers and here's the verdictNew iPhone 20 video reveals the 8 biggest upgrades to expect from the 20th anniversary iPhoneI knew better than to carry around a naked phone — then my iPhone 17 Pro Max met the asphalt