Tim Cook exits Apple CEO role, warns of '100-year flood' in memory-chip prices

September 3, 2026 at 05:45 PM2 min

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Tim Cook stepped down as Apple CEO on Sept. 1 after 15 years, becoming executive chairman. In his final earnings call, he warned that AI data-center demand has created a '100-year flood' in memory-chip pricing. Elon Musk publicly agreed, calling it the 'biggest price jump in anything I've ever seen.'

Key Facts

Tim Cook stepped down as Apple CEO on Sept. 1, 2026, and became executive chairman.
Cook described the memory-chip price surge as a '100-year flood' driven by AI data-center demand.
Apple raised prices across numerous Mac and iPad models in response to rising memory costs.
Microsoft, Hewlett-Packard, Dell, and Nintendo also raised prices on devices.
Consumer prices for computer software and accessories rose about 15% year over year.

Leadership Transition

Tim Cook stepped down as Apple CEO on Sept. 1, 2026, after 15 years in the role. He handed the chief executive position to John Ternus, Apple's longtime hardware chief. Cook remains at Apple as executive chairman.

Memory-Chip Price Surge

During his final earnings call, Cook said Apple was caught in a '100-year flood' in memory-chip pricing. He attributed the crisis largely to the enormous appetite of AI data centers. Cook told The Wall Street Journal, 'I've never seen anything like it in any area in over 40 years.' He said Apple had tried to shield customers from soaring memory and storage costs, but the pressure became 'unsustainable.' Elon Musk publicly agreed, calling it the 'biggest price jump in anything I've ever seen.'

Industry-Wide Impact

Apple raised prices across numerous Mac and iPad models. Microsoft, Hewlett-Packard, Dell, and Nintendo also raised prices on devices. A Wall Street Journal chart showed consumer prices for computer software and accessories surged about 15% from a year earlier. The Wall Street Journal article warned that America's AI buildout is pushing up prices on everything from smartphones to electricity.