Apple Inc. is set to raise the prices of its products due to a significant increase in the cost of memory chips, according to Tim Cook, the company’s outgoing CEO.
In an interview with the Wall Street Journal (WSJ), Cook stated that such price hikes are “inevitable” as the current state of memory chip availability has become “unsustainable.”
While Cook did not specify when the price increases would take effect or which products would be impacted, there is speculation about whether the upcoming iPhone 18, anticipated for release in September, will see a price adjustment.
Memory chips are critical components in various smart devices, including smartphones. However, recent surges in demand driven by advancements in artificial intelligence (AI) have led to rising prices for these essential components.
”We’re doing everything we can to absorb the substantial increases being passed on to us, and we’ve been striving to shield our customers from these costs, but the situation has become untenable,” Cook explained.
”There’s a reduced supply at a time when consumers are eager for devices, and memory suppliers are imposing significant price hikes.”
Cook, who will be succeeded by John Ternus in September after a 15-year tenure, emphasized the need for memory pricing and supply to stabilize at more reasonable levels for consumer electronics.
”That’s the key takeaway,” he added.
The cost of RAM, typically one of the more affordable computer components, has more than doubled since October 2025.
In addition to escalating AI demand, geopolitical tensions, including the conflict in Iran, have disrupted the global helium supply, a gas vital for semiconductor production, further driving up chip prices.
According to research firm Omdia, the average selling price of smartphones worldwide is projected to rise by approximately 20% in 2026, reaching an all-time high.
Apple’s new smartphones could be priced up to $150 higher than the iPhone 17 models, as the company is expected to enhance specifications to accommodate new AI functionalities, according to Omdia’s smartphone market analyst Chiew Le Xuan.
Many smartphone manufacturers have already increased prices, reduced promotional offers, or downgraded specifications to maintain profit margins in light of rising costs.
”This represents a new pricing reality rather than a temporary fluctuation,” he noted.
Several major tech firms have also pointed to mounting challenges within the semiconductor sector.
Speaking exclusively to the BBC earlier this month, Taiwan Semiconductor Manufacturing Company (TSMC) indicated that higher production expenses driven by inflation could lead to future pricing adjustments.
The company produces cutting-edge processors developed by firms including Apple, Nvidia, and AMD.
Meanwhile, Samsung recently warned that limited availability of memory components is likely to push up the cost of consumer electronics.
In April, Sony increased the retail price of its PlayStation 5 system by £90 in the UK and $100 in the US, citing persistent economic headwinds worldwide.
Nintendo later announced that the cost of its Switch 2 console would rise from September because of shifting market dynamics.
Since its debut last September, the iPhone 17 range has continued to attract strong consumer interest. Apple reported a 17% year-on-year increase in device sales during the first quarter of 2026, supported largely by robust demand from Chinese customers.
Earlier this year, Apple also discontinued the base version of its Mac Mini desktop, effectively lifting the starting cost by approximately $200 (£150).
By: Magdalene Agyeiwaa Sarpong