
Apple Plans to Jack Up Prices & Europeans Love American Cheap Eats
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Narrator
AI is unchartered territory and many leaders are trying to navigate through without a guide to help them. That's why Morning Brew created the Intelligence Shift, a new podcast with PwC. It's all about how AI is fundamentally changing different industries. Host Dan Priest is joined by a top tier roster of industry leaders who share real stories and real lessons learned. Get guidance from industry experts. Listen to the Intelligence Shift wherever you get your podcasts.
Neal Freyman
Good Morning Brew Daily Show. I'm Neal Freyman.
Toby Howell
And I'm Toby Howell.
Neal Freyman
Today, iPhone, eighteen hundred dollars. Apple is raising prices on tablets, computers and phones.
Toby Howell
Then Midjourney is a company that generates AI images. Now it's moving into full body medical scans. It's Monday, June 22nd. Let's ride.
Neal Freyman
Good morning and happy. Keir Starmer has given his two weeks, or should I say two months. Just a few hours ago, the UK Prime Minister announced he will resign by September after facing rebellion within his own party. Pressure has been growing on Starmer to step aside after failing to kick start the economy. And scandals like appointing a friend of Jeffrey Epstein to be the ambassador to the us. The most likely successor to Starmer is Andy Burnham, the left wing former mayor of Greater Manchester. But even if Burnham gets a position, I would not bank on him staying that long. To Toby, this might be the job with the highest turnover in the world.
Toby Howell
Yeah. Six leader in the last seven years. To put that in perspective, the Cleveland Browns have also burned through six head coaches in the last seven years.
Neal Freyman
How many quarterbacks?
Toby Howell
Right, so there you go, uk. You got the same organizational stability as the Browns. The average time in office of a UK Prime Minister since Brexit will be just two years. The shortest being Liz Truss at 49 days long. The longest is Boris Johnson actually at 1140 days. Keir Starmer lasted 717. As for one of the reasons he stepped down, the New York Times called him one of the least popular prime ministers in modern British history. So that'll do it to you.
Neal Freyman
And now a word from our sponsor service. Now, Toby, pop quiz.
Toby Howell
No. No more quizzes, no more homework. I'm sick of it. The AI was supposed to handle the parts of work I hate, but it just describes the problems back to me. Generating more work.
Neal Freyman
Which is why I was going to ask about ServiceNow's AI specialists. They aren't a tool. Think of them as digital teammates who can actually do the work. They can resolve cases, process requests, close loops without generating extra work for you.
Toby Howell
When you can truly delegate to AI, you can get back to the Work only you can do the work that requires a person with ideas and judgment and, you know, a Pulse.
Neal Freyman
To put AI to work for people, visit ServiceNow.com that's ServiceNow.com Apple is going to raise prices on its computers, tablets and phones imminently. In a surprise announcement, CEO Tim Cook told the Wall Street Journal that upcoming price hikes are unavoidable. Quote, we're doing our best to mitigate the huge increases that are being passed to us and we've been trying to shield our customers from the increases, but the situation has become unsustainable. And what situation is this? Memory and storage, key ingredients in the tech gadgets use every day, from phones to video game consoles. The problem is they're also key ingredients for artificial intelligence. And AI giants have been hoarding all the memory supply to run their models, leaving peanuts to consumer electronics companies. Costs have surged as a result, with prices for memory and storage chips quadrupling. Cook says he has no choice but to start passing on those extra costs to consumers. Shows the scale of the problem. Historically, Apple does not raise prices without adding new features. But then again, we've never experienced this kind of commodity price swing in modern tech history. Tim Cook, who spent decades working in the tech supply chain, called it a hundred years year flood. I've never seen anything like it in any area in over 40 years, Toby. My iPhone screen is cracked to pieces, but looks like I'll just have to live with it for now. This Apple price hike is maybe the first vivid example of us consumers paying for the AI boom.
Toby Howell
And Apple is not used to this. They are not used to being, you know, second or third in line when it comes to their input costs because they spend tens of billions of dollars on these memory chips, on these storage. And usually they can use the fact that, hey, we're Apple, we have really big orders, push suppliers into giving them better deals. But their hands have been tied at this point because AI companies are also coming in and saying, hey, we will give you those multi year contracts, we will give you these huge prepayments upfront to get our hands on these chips. So suddenly Apple is like, gosh dang it, I'm not like the big fish in the pond anymore. There's a lot of fish in this pond and they all want memory chips. So that is a interesting position for them to be in because even Apple isn't safe from this. And usually Apple is the safest when it comes to, you know, managing supply chains.
Neal Freyman
Let's talk about what we're actually talking about. Here when it comes to memory in storage. So memory, this type of memory that everyone's clamoring for is called dram, which is dynamic Random access memory. And then the storage is called NAND nd, which stands for just not. And, and the Wall Street Journal had a good explanation, a good metaphor to kind of wrap your head around why these are important for both AI and for these consumer electronics companies like Apple. So their metaphor is that memory is a desk that holds all the. Imagine you're in a 20th century office just for a second if you, if you know what that was like. But the memory of the desk that holds all the papers a worker needs to perform a particular task at that moment. So that's dram. Memory is basically they're running the apps that you're currently using on your phone. Storage is the filing cabinet that holds everything else that you have in your office that you're maybe not using right at the moment, but you want to keep like photos and videos. So there are only a couple of companies out there. There's just three that make DRAM the memory and there's only five which include, includes those three that make nand. And memory and storage is now at a premium because these companies just can't ramp up production to match the insatiable demand.
Toby Howell
I mean, those companies that you mentioned, Micron shares are up over 800% since its memory gold rust started. SK Hynix, which is a Korean company, their shares are up 800% as well. SanDisk, which we've talked about on the show before, which you think makes the little tiny USB drives that go into your computer, those shares are up 4,600% because of all of this memories in such demand. But you mentioned that maybe this is the first time we're really seeing the impacts of the AI boom on consumer electronics. But if you're not an Apple head, you've been feeling it for a while. Microsoft raised their Surface tablet prices. Nintendo raised their Switch to prices by $50 based off this memory crunch. The PS5 Pro jumped from 750 to $900. Basically anything that requires these input costs are going to go up in price as well. So it's not just Apple. It is pretty much anything with an on off button that, you know, requires it to remember anything is getting more expensive.
Neal Freyman
What price are we looking at? Well, we don't actually know yet. Apple hasn't announced it, but analysts have speculated it looks like the they're going to first of all boost the price of Macs and the iPad for sure. And then when it comes to the iPhone, it looks like they're going to possibly, according to analysts, jack up the price by $100 for the iPhone Pro and the iPhone Pro Max and then the iPhone 18 Pro, which is coming this fall, they're going to announce it. The Wall Street Journal speculates that it could come with a price tag of $1300.
Toby Howell
Moving on. Silicon Valley has spent the last few years trying to smush AI into everything. And now it's coming for the spa. This past week, the AI image generation company Midjourney announced a very strange pivot from AI images to AI health. The new division is called Mid Journey Medical and is set to open a futuristic Wellness center by 2027 with a unique take on medical imaging. Rather than a claustrophobic MRI tube or an expensive CT scan, customers will descend into a water filled tank and pass through rings of underwater sensors. The scanners use ultrasound technology, sort of like a dolphin uses echolocation to produce a full body 3D image, insides and all in about a minute. Proponents say technology could eventually make full body imaging as routine as getting a massage. Critics say it could also make anxiety and false positives more routine too. Plus, it remains to be seen if AI algorithms and unproven technology can produce truly medical grade results. The pitch goes beyond the medical though, since you're already wet after a scan. The company's first flagship location in San Francisco's Union Square will also come with hot tubs, saunas and cold plunges and be open 24 hours a day. Neal, I am not above climbing into a fish tank to figure out what's wrong with my quad that I pulled in a co ed soccer game last week.
Neal Freyman
I'm going to ship you out to San Francisco because we got to get this thing fixed ahead of a couple of big sporting events we have coming up this summer. What I find very interesting about this is actually it's the first instance of maybe a company pivoting away from AI. We had allbirds pivot to AI and any, any number of companies saying that they do AI stuff now. But this is Midjourney, which makes AI images that you've no doubt seen online saying, okay, we're just getting into the medical device business. And David Holtz, who's the CEO, said they're not currently using any AI in the scanner. So it's an interesting business Pivot, because often when a company makes a pivot or extends into new areas, they use technology or know how that they do that. They have to make one product to make another product. And midjourney is just completely doing a 180 here and just getting saying we're going to make spas.
Toby Howell
The pros and cons of this are numerous on both sides. So the pros are obviously, if whole body scans can become cheap, if they can become fast, if they don't have to involve radiation or, you know, the awful experience of being in an MRI machine, why not scan everyone regularly? You could catch cancers earlier, you could spot disease symptoms before they appear. You could turn it into a preventative, you know, medical environment, which a lot of people have been trying to do for a while now. But people on the doctor side of the argument, if you will, say that more detection doesn't necessarily mean better out outcomes. The medical industry has repeatedly shown that finding more abnormalities doesn't necessarily lead to better outcomes. The classic example is South Korea absolutely had this thyroid cancer screening boom where diagnosis surged roughly 15 fold, but thyroid cancer mortality barely changed. And what actually just happened is you, you have more biopsies, you have more anxiety, you have more people going in to check out, you know, this lump or this bump that aren't necessarily things that needed to be checked in on. So that's kind of both sides of it is that just because you can make medical imaging a lot cheaper and faster doesn't necessarily mean it's going to lead to better patient outcomes.
Neal Freyman
And what may be the biggest breakthrough here, or the biggest concept breakthrough is putting pairing a doctor's office, so to speak, with a spa. So these dual purpose retail locations and the communications from Midjourney and its proponents have really hammered the fact that they want to make this a super pleasant place to go to. David Holtz, the CEO, said, I don't want to feel like I'm going to a doctor's office. I want to feel like I'm going somewhere that's nice. And they had this idea that basically you're going to get wet anyway by going into their underwater scanning device. They might as well just, hey, put some bass and put a spa in there. He said, you're going to have to get wet. But there are a lot of nice situations to get wet, which, you know, I'm always saying, but maybe you'll, maybe you'll see other instances of retail locations that maybe don't offer the sexiest service, whether it's the DMV or a bank sort of operate, I don't know, maybe a cafe on their premises. Or you see ev charging stations do this as well with a dual purpose. So maybe others will take the baton.
Toby Howell
What are they going to add to the DMV that's going to make. They're going to add a spot.
Neal Freyman
They could add anything to the dmv. How about some. How about some coffee and cookies?
Toby Howell
I'm really just not sure this could exist anywhere outside of San Francisco, though, because it is combining just so many very SF things. AI longevity, wellness, biohacking, charging people a lot of money probably for things that they don't necessarily need. That is the perfect nexus of everything that is San Francisco. So will this work in Detroit? Who knows? But if you again, like zooming out again, a 60 second body scan is something that is actually revolutionary in a lot of spaces. So maybe it is a widespread thing. The CEO said, I want to have 50,000 of these things up and running by 2030 or so. So he has very large ambitions.
Neal Freyman
And the big question is, you know, will it fulfill the medical aspirations that it's seeking out? Okay, welcome to Winners of the Weekend, the segment where Toby and I picked two things that had a little more fan support than Wyndham Clark. I won the pre show game of tag, so you're it and I get to go first. My winner is creators who've replaced the Don Draper type as the new power brokers in the world of advertising starting, all your marketer friends will be in Cannes Lions, the annual advertising soiree taking place this week on the south coast of France. While the mountains of oysters and leaders of champagne haven't changed since years past, the advertising world has, thanks to the rise of Instagram, YouTube and Tik Tok, individual creators now rival agency bigwigs at the top of the marketing food chain. According to Insider, more than 250 creators are expected to be in Cannes, including Caller Daddy host Alex Cooper, TikTok stars like Keith Lee, and YouTubers including Eleanor, Neal and Colin and Samir. Their presence and prominent role at the festival reflects the transformation of how brands speak to audiences. Nearly nine in 10 established US companies will invest in influencer marketing this year, up from less than 40% a decade ago, E Marketer estimates, adding that influencer marketing spend will rise to $12.4 billion this year. Bain partner Shweta Bhardwaj told Insider that creators have upended marketing strategy, moving from the margins to the epicenter. Many of the CMOs I talked to say the of yesterday was us talking about our brand, she said. The marketing of today is consumers talking about our brands, and our role as CMOs is to enable that conversation as authentically as possible. Toby as an influencer yourself, are you feeling a little fomo?
Toby Howell
Well, there's two no duh moments here for me. The first no duh is yeah, obviously no duh I'd like to be there, Neil, it's the south of France in the summer. But then the second no duh is that of course creators should be a bigger conversation of the advertising industry. Right now it almost feels like boomery to say is like, hey, you know what the new thing in marketing is? What if we gave money to these creators to talk about our brand? But it is kind of a big shift for this rather slow moving industry some times. And I think Darman, who you know, creates has a massive YouTube channel. You've definitely seen his shorts around. He put it well is that creators receive constant audience feedback and understand what drives engagement. And he says he criticized the traditional advertising timeline where you have decks, you have months of meetings and then you go through approval process. Imagine someone who's posting every single day on social media. They are way more read up on what is actually playing with audiences right now than any sort of, you know, marketing deck could hope to do. So that's my no duh moment is like, yes, creators know what's going on, they're more tapped in. And of course companies should lean on their expertise more so than the other way around.
Neal Freyman
Right? Because companies, I mean what's happening can, is a lot of networking and speeches and all and all of that. But there's deals being worked out as well. But at the same time, I think what companies want from creators is just like to learn from them. They don't want to necessarily hire Alex Earl or they don't want to hire other YouTubers for their, for their particular campaign. They may want that, but more, more so than that, they just want to look at their own campaigns through a more creator friendly lens. Because clearly creator creators know social media more than these huge brands like P and G or McDonald's. So I think they just want some face time with them to, to just kind of learn. And I had this experience, we were at Davos in February and I was at this like marketing advertising dinner and there were a couple of YouTubers and Instagram people there and there were a bunch of CMOs at huge companies and all of those people wanted to know is from the creators, like don't just tell me everything. Like they were so desperate to learn. I think that's what's going to happen at Cannes.
Toby Howell
Yeah, it has definitely moved from can you just make a TikTok for us about our product to sitting down at dinners with them and saying, do you want to have an advisory role in our company? Do you want to do a more strategic partnership? Do you want to be involved in the process of building this campaign from the ground up, not just coming in and slapping a hashtag sponsored post in at the end? That's probably been the biggest shift as the creator economy has matured over the last couple of years or so, is that it's not just a single post. It's about longer campaigns, longer relationships, and just being more involved from the ground up in the ideation process and the execution of an advertising campaign. All right, we're going to take a quick break and come back with my winner of the weekend.
Narrator
You thank
Neal Freyman
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Toby Howell
I mean, that stuff is everywhere.
Neal Freyman
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Toby Howell
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Toby Howell
My winner of the weekend is Alexis de Tocqueville because tourists in town for the World cup are doing the Frenchman proud and how wholeheartedly they are embracing America. While FIFA brought the world to America, America has returned the favor by bringing the world Buc EE's and rants dressing. For months leading up to the start of the tournament, no one was quite sure what would happen when millions of soccer fans descended on the United States for a World Cup. The answer, apparently, is that they would become obsessed with anything that embodies ordinary America. Buc EE's has become a tourist attraction with the Texas based mega gas station chain drawing crowds of foreign visitors. One British fan posted enthusiastically about driving a Ram pickup truck while listening to country music, living out his American road trip fantasy. Ranch dressing has become such a popular souvenir that the TSA recently reminded travelers you can't transport bottles larger than 3.4 ounces in your carry on. In short, it's the exact kind of exposure countries splash out billions of dollars on mega events to try and drum up. Millions of people are seeing America not through political headlines, but through Boston getting out drinked by Scottish fans, Ecuadorians housing Philly cheesesteaks and Japanese filling up on bottomless chips in salsa. Neal, it is soft power like you dream about. It has been a perhaps unexpected win for the usa considering the negative feelings surrounding the event. In the lead up.
Neal Freyman
Yeah, if you haven't been to the United States and you live in a foreign country, the way that you have viewed American culture is probably through movies, because that's one of the biggest cultural exports of the United States. And then they're coming to the United States and they're saying, actually, like, this is exactly like it is in the movies. I'm driving on a huge highway with huge trucks. There's cowboy boots and cowboy hats. If I'm in Texas, there's fast food everywhere. There's beautiful spots like the Florida Keys and the Everglades. So you have a Japanese tourist named Sato saying, saying it felt like the quintessential America, the kind you see in movies wherever I went.
Toby Howell
And food is definitely kind of the unifying theme here because a lot of fans spent a lot of money on getting to the tournament. You know, tickets, flights, hotels. That is where all the money is going. So they're left with, like, what do I eat? And there are a lot of options. There are a lot of options. America excels at, you know, cheap eats. And so, you know, we've seen cheesesteaks be embraced. New York pizza slices have been like a godsend for some of these people watching games and they go to the Times Square. Like a dollar fifty for a slice of pizza. That's great. Chick Fil. A bodega is street tacos, hot dogs. These are all like one guy was marveling about sh. Shack and just saying, wow, it's pretty dang good burger. Actually.
Neal Freyman
We marvel about Shake Shack.
Toby Howell
Me too. He was actually from France. He's like, actually it wasn't as good as I was expecting. But it is very funny that food has emerged as kind of this. This thing that a lot of these Europeans are losing their mind out. And actually everyone from all parts of the world are losing their mind out because you don't want to spend money on like nice meals. You want to spend money on, like the cheap things that embody America.
Neal Freyman
Speaking of the things that United States as well, it is a fast food pioneer. I was in Paris a few years ago. We had talked about it on the show, actually. Krispy Kreme was opening its first location in France and there was lines out the door for this one donut chain that's kind of everywhere in the United States. My favorite quote might be about the Cheesecake Factory. So Sammy Bell of the UK went to Florida to. To root for England. And she told the Washington Post that she was at the Cheesecake Factory. And she said, we've said it was probably one of the best meals we've had in terms of just the variety which you were talking about. No dumb moments. I mean, for the United States, people listening, we're like, yeah, obviously it's known for its massive menus, but for people coming here, it's kind of a novelty.
Toby Howell
It is funny, though, because culturally this has been a massive success for the US especially that it's like the 250th anniversary. You could not have, you know, asked for a better embracing of American culture. But financially, it still hasn't quite been. The windfall we have reported on this a lot is that hotel rates have actually fallen in some cities. International travel numbers have come in a little bit weaker than expected, which again, you wouldn't see just from based off of social media. But the hotel industry is not exactly saying we got the boon times that we thought we were going to get here. So maybe economically it hasn't lived up to the cultural win that this tournament has been for the United States.
Neal Freyman
It's Monday, so here's what you need to know to stay ahead in the week. Ahead, all eyes are on Bergenstock, Switzerland, where the US and Iran are negotiating a permanent end to the war that began in late February. While a temporary deal has been signed that reopened the Strait of Hormuz, the US delegation led by Vice President JD Vance will tackle much thornier topics like the future of Iran's nuclear program and sanctions relief. A key wedge point in the talks will be Lebanon, where Iranian proxy Hezbollah and Israel continue to exchange fire. Yesterday, President Trump threatened to strike Iran again if they didn't stop Hezbollah from, quote, causing trouble.
Toby Howell
Let's get a little straight update too. So the top line number shows traffic through the Strait of Hormuz has recovered slightly. 21 ships transited on Saturday, which isn't bad. But what is bad is that number dwindled to 12 ships yesterday. Plus, according to an analysis from Windward, the current traffic profile of these ships is dark sanctioned Iranian linked ships who travel with their automatic identification systems off. So even though there are more ships going through the strait, it still feels closer to that blockaded strait rather than a truly open one.
Neal Freyman
Moving to Western Europe, things are about to get historically toasty as a brutal heat wave bears down. It's expected to be one of the worst in the continent's history. Today and tomorrow, France could see temps of 113 degrees, London 102, Berlin 100 and Amsterdam 93. Famously, Europe does not have nearly as many air conditioners as in the us. So we hope you all stay cool.
Toby Howell
And that is Fahrenheit temperatures, we should add, because we're talking about Europe. So here's how you know it's serious though. The French government has banned public drinking in certain, quote, red alert zones with the worst of the heat to try to allow medics to concentrate on taking care of the most vulnerable, not, you know, people who are overserved outside. So Spain, Italy, Germany, France, stay safe over there.
Neal Freyman
Everyone returning to the returning to the World Cup. The group stage wraps up with games all this week before the round of 32 kicks off on Sunday. After convincing wins in their first two matches, the US has already clinched their group, so their game against Turkey on Thursday is a mere formality. But given the US's impressive play so far, the question that is starting to creep in. You want to push it out, but it is creeping into your mind is can we actually win this thing?
Toby Howell
I believe that we can win, as the United States fans like to say. Tim Howard, who you know is an American hero for his performances in the World cup as a U.S. goalie, has said there's no chance in heck that the US can win this thing. I don't know why you would say that because There is a chance in heck. The top teams have looked pretty vulnerable, honestly, like Spain, France and at least for one half have looked decently, you know, gettable for a little bit. England looked okay, but historically speaking we, we tend to win against them. I'm talking very historically speaking. So why not us?
Neal Freyman
Why not us? Yeah, I totally think we can win and might as well believe so. Yeah, Thursday game doesn't really matter. So hopefully our best players can get some rest. But the story of the tournaments of our probably has to be Cape Verde. They are a tiny country, 500,000 people, midsize American city and they tied Spain and then last night they tied Uruguay. So it's possible that they could go into the round of 32. Just an inspired play from that. Moving on, there is new TV to watch other than soccer. The Bears final season comes to Hulu on Thursday for those still watching. And Larry David is back on Friday with Life Larry and the Pursuit of Unhappiness, an HBO sketch show produced by the Obamas about the history of the United States. Pretty, pretty, pretty fine. I don't know. The trailer didn't look great. I'm the biggest Larry fan there is.
Toby Howell
I know you, you are actually my go to with any of these things, like is it going to be good, is it going to be bad? And I trust your word implicitly there. You know what? I actually did want watch but is now in limbo is this movie called Artificial which features Andrew Garfield as Sam Altman. I don't even know this movie is being worked on, but apparently it was almost done and Amazon, who is, you know, the studio behind it, dropped it at the last minute. I saw some pics of Garfield as Altman on set and it was remarkably good. I mean, he was mostly just wearing like the typical vests and glasses that Sam Altman does, but it looked like he nailed it. So hopefully some other studio picks that up because that would be fun to see. Have that, see the light of day.
Neal Freyman
It's like the Social Network for. Right, for opening. All right. Speaking of Amazon, they're hoping you're in the mood to shop because it's holding their annual Prime Day sales event starting tomorrow. I should say prime days. It's four days long and coming earlier in the summer than typical. It's usually in July every year.
Toby Howell
I don't know what to buy when these sales events hit. And every year I just land on socks. And I always say it's in the pod. I'm like, if you have any good sock recommendations, send them my way. Because somehow in the interim between last Prime Day and this Prime Day, I've lost every single one of my socks. Where do they go? Does the dryer eat them? So send me your sock recommendation.
Neal Freyman
In the interim between June 1 and June 22, I've lost all of the socks I bought for you. Pricely. I don't know where they go. Okay, that is all the time we have. Thanks for starting your morning with us and have a wonderful start to the week. To share your thoughts on the episode or anything else, send an email to Morning Brew daily at Morning Broadcom or DM us on Instagram at Ambie Daily show let's roll the credits. Emily Milian is our supervising producer, Raymond Lu is our senior producer, our producer is Olivia Graham and our associate producer is Olivia Lake. Technical direction by Nina Miller. Hair and makeup is still trying to figure out their order from the Cheesecake Factory. Devin Emery is our president and our show is a production of Morning Brew.
Toby Howell
Great show, Danielle. Let's run it back tomorrow.
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Episode: Apple Plans to Jack Up Prices & Europeans Love American Cheap Eats
Date: June 22, 2026
Hosts: Neal Freyman & Toby Howell
This episode of Morning Brew Daily covers three major topics:
Segment Start: [02:46]
Segment Start: [07:30]
Segment Start: [18:34]
Segment Start: [22:50]
On Apple:
On Wellness/Medical Scans:
On American Soft Power:
| Time | Topic | |---------|-------------------------------------------------| | 02:46 | Apple’s price hikes and the memory chip crisis | | 07:30 | Midjourney’s medical imaging and spa pivot | | 18:34 | Europeans embrace American food & culture | | 22:50 | Quick news hits, global headlines, TV picks |
The episode is witty, conversational, and packed with sharp analogies and relatable pop culture asides. The hosts balance serious reporting with humor, making complex tech and economic stories accessible and memorable.
Summary by: Morning Brew Daily Podcast Summarizer, powered by OpenAI.