Apple plans to raise the prices of its products as the cost of the memory chips it uses has surged, the technology giant’s boss said.
Tim Cook, the outgoing chief executive, told the Wall Street Journal that price increases are "unavoidable" as the memory‑chip market has become "unsustainable".
He did not give a timetable, but the rise could affect the iPhone 18 slated for September. The company is expected to upgrade its new phones with AI‑centric features, which will drive higher costs.
Memory chips have become vital for consumer tech, and the surge is linked to the AI boom and to a helium shortage caused by the war in Iran, both of which have pushed semiconductor prices upward.
According to Omdia, the average selling price of smartphones worldwide is projected to rise by around 20% in 2026.
Apple’s new devices are anticipated to cost up to $150 more than last year’s iPhone 17, reflecting the cost of new specifications.
Other companies – TSMC, Samsung, Sony, Nintendo – are also raising prices or cutting specifications to defend margins amid higher chip costs.
Apple is hoping the memory pricing and supply will return to reasonable levels; until then, the company acknowledges it must lift prices.
The decision comes after significant revenue growth and increased demand in China, but the high costs present a new pricing reality.
