Apple Cuts iPhone Orders Up to 20%. Its $2,000 Gamble May Already Be in Trouble.

The artificial intelligence boom has an expensive side effect: The components powering tomorrow’s technology are making today’s gadgets harder to afford. Reuters reports that demand from AI data centers is squeezing memory supplies and raising costs for smartphone and computer manufacturers. The same memory boom lifting chipmakers’ prospects creates a difficult choice for their customers: absorb the expense or pass it along.

For investors, that choice matters. Higher selling prices can support revenue, but they don’t automatically mean stronger profits. When shoppers postpone upgrades, a strategy built around charging more can start delivering less.