AI Component Demand Challenges Apple’s Supply Chain

Apple is facing challenges in its supply chain dominance as AI companies are increasingly competing for crucial components, reports The Wall Street Journal. Suppliers of advanced chips, DRAM, and NAND memory are gaining power due to the rising demand from AI firms. This trend is reshaping supplier relations and potentially leading to higher prices for Apple as manufacturers have more leverage. The shift in supply dynamics coincides with Apple’s upcoming launch of updated MacBook Pro models, expected to bring incremental performance improvements rather than major design changes. The new models, identified as J714 and J716, are anticipated to maintain the current form factor while offering faster processors. The tightening availability of existing high-end MacBook Pro models on Apple’s online store further hints at an imminent product update.