Apple plans to raise the prices of its products as soaring memory chip costs strain the company’s supply chain, outgoing CEO Tim Cook has revealed. Speaking to the Wall Street Journal, Cook described the increases as “unavoidable,” citing an “unsustainable” situation in the global chip market.
He did not specify when the price changes would take effect or which products would be impacted, leaving uncertainty over whether the upcoming iPhone 18, expected in September, will be affected.
Memory chips, vital to smartphones and other smart devices, have seen sharp price rises in recent months driven by booming demand from artificial intelligence applications. “We’re doing our best to mitigate the huge increases being passed to us and shield customers, but the situation has become unsustainable,” Cook told the WSJ.
“There’s less supply at a time when consumers want devices and the memory guys are passing along huge price increases,” said Cook, who is due to be replaced by John Ternus as Apple’s CEO in September after 15 years in the role. “We definitely need memory pricing and supply to return to reasonable levels for consumer products. That’s the bottom line.” The price of Ram – typically one of the cheapest computer components – has more than doubled since October 2025.
In addition to rising AI demand, the war in Iran has also disrupted the global supply of helium, a gas crucial in making semiconductors, adding to the cost of computer chips. The average selling price of smartphones globally is expected to rise by around 20% in 2026 to an all-time high, according to research firm Omdia.
Apple’s new phones are likely to cost up to $150 more than the iPhone 17s, as the firm is expected to upgrade their specifications to support new AI features, Omdia’s smartphone market analyst Chiew Le Xuan told the BBC. Most smartphone brands have already raised prices, pulled back on promotions or cut specifications to protect their profit margins in response to rising costs, he added.
“This is the new pricing reality, not a temporary spike.” Other technology giants have also highlighted pressure in the chipmaking industry. In an exclusive interview with the BBC this month, Taiwan Semiconductor Manufacturing Company (TSMC) would not rule out price increases as inflation pushed up its costs.
TSMC makes the most advanced chips designed by companies such as Apple, Nvidia and AMD. Earlier this year, Samsung said that it expects memory chip supply shortages to make electronic devices more expensive. In April, Sony raised the price of its PlayStation 5 consoles by £90 in the UK and $100 in the US as a result of “continued pressures in the global economic landscape”.
Nintendo later said it would increase the price of its Switch 2 from September due to “changes in market conditions”. The iPhone 17 has been popular since the lineup was launched last September. Sales of Apple devices grew by 17% in the first three months of 2026 compared with the same period a year ago, helped by strong demand in China.
Apple removed the entry-level option of its Mac Mini compact computers, raising its starting price by about $200 (£150) earlier this year.
Source: bbc.com
