Apple plans to raise prices on its products to offset the surging costs of memory and storage chips. Chief Executive Tim Cook stated in an exclusive interview that these price increases are unfortunately unavoidable. Furthermore, the company is struggling to shield customers from huge cost increases passed down by suppliers. Consequently, Cook noted that the current situation has become completely unsustainable. Apple declined to offer specific details on the timing or scale of the planned price hikes. However, the next major product launch is likely in September, featuring the anticipated iPhone 18 lineup and a new foldable iPhone.
The AI Squeeze on Chip Supply
Skyrocketing demand for memory and storage chips from artificial intelligence companies has significantly pushed up costs. In fact, prices for both components have quadrupled since last year as companies like Google, Microsoft, Meta, and Amazon increased their capital spending. Therefore, Apple would have to raise device prices substantially to maintain its profit margins. Passing the higher cost directly to consumers would add about $270 to the price of the next iPhone Pro model. Meanwhile, experts expect memory prices to continue increasing into 2027. Consequently, wafers for consumer technology will fall up to 15 percent short of demand as suppliers prioritize specialized AI memory.
Industry Impact and Apple’s Strategy
Three companies currently dominate the market for DRAM memory: Samsung, SK Hynix, and Micron. Unsurprisingly, their stock prices and profits have exploded over the past twelve months. Other major consumer electronics companies, including Hewlett-Packard, Dell, and Nintendo, have also raised prices recently. Moreover, Apple stands ready to use its extensive cash reserves to boost memory supply. Cook emphasized that the company is willing to be part of the solution, although he explicitly ruled out building Apple’s own memory factories. Finally, Cook described this unprecedented commodity price swing as a hundred-year flood, noting he had never seen anything like it in over forty years.
Reference
Winkler, R. (2026, junio 17). Apple price increases as memory supply costs surge. The Wall Street Journal. https://www.wsj.com/tech/apple-price-increases-memory-supply-199845b1