Shares ofRedingtonjumped more than 10% on Thursday after Apple’s outgoing CEO Tim Cook revealed the iPhone maker’s plans to raise prices to offset increasing memory and storage chip costs amid the AI boom.

Redington sharply rallied to Rs 274.83 apiece on NSE, adding nearly Rs 2,026 crore to its total market capitalisation, taking it to Rs 21,486 crore. The stock is on track to record its sharpest single-day rally since early March this year.

“Unfortunately, price increases are unavoidable,” Tim Cook told the Wall Street Journal. “We are doing our best to mitigate the huge increases that are being passed on to us, and we have been trying to shield our customers from the increases, but the situation has become unsustainable,” he said.

This comes as a surge in AI-driven demand for data centres has forced consumer electronics companies into fierce competition for dwindling supplies of key components, driving prices sharply higher.

Memory and storage costs are both concerns for the company, with particular emphasis on the DRAM market, Cook told the WSJ. He noted that more supply is being allocated to high-bandwidth memory, which is used in AI servers. “There is less supply at a time when consumers want devices and the memory companies are passing along huge price increases,” he said. “We definitely need memory pricing and supply to return to reasonable levels for consumer products. That’s the bottom line,” he added.

Also read:Apple to raise prices due to memory chip shortage, CEO Tim Cook says

Tim Cook is set to hand over his position to John Ternus in September. He did not disclose when or how much prices might rise, nor which products could be impacted. This comes as Apple is reportedly working on releasing its first foldable iPhone in September, along with the iPhone 18 Pro and Pro Max.

Why are Redington shares jumping?

Redington has a long-standing partnership with Apple, dating back to a 2007 distribution agreement for Apple products in India. Redington manages logistics, warehousing and distribution to resellers and retailers across India, the Middle East, Turkey, Africa and South Asia. It is one of Apple’s key official national distributors and supply chain partners in India. Apple’s price hikes may have led to expectations that Redington will derive a larger profit on each product, causing the sharp rally.

Redington in May reported a consolidated net profit of Rs 391 crore for the January-March quarter of FY26. This is over 41% lower than the Rs 666 crore net profit reported in the corresponding quarter of the previous financial year.

The firm’s revenue from operations, meanwhile, increased nearly 26% year-on-year to Rs 33,213 crore during the quarter under review.

Also read: Trump says Apple to work with Intel to manufacture chips in US

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