Apple is preparing to raise prices on its products as the cost of memory and storage chips climbs sharply, according to Chief Executive Tim Cook. He said the company has tried to shield customers from higher component costs, but the situation has become unsustainable.
In a recent interview, Cook did not say when the changes would happen or which products would be affected. He also declined to specify the size of the increases. Still, the timing could become significant because Apple’s next major product launch is expected in September, when it is likely to unveil the iPhone 18 lineup, including a new foldable iPhone.
Rising Pressure
The pressure comes from a global surge in demand for memory and storage chips, much of it driven by artificial intelligence companies building out server capacity. That demand has pushed up chip prices so strongly that Apple may need to raise device prices substantially just to protect its profit margins.
Research firm TechInsights estimates that passing the higher costs on to consumers while maintaining margins could add about $270 to the price of the next iPhone Pro model.
Apple’s challenge is not limited to one product line. Price increases, especially for Macs and iPads, could arrive sooner than the September iPhone launch. Apple already raised the starting price of the Mac Mini last month between launch events.
Supply Squeeze
Memory and storage chips are essential parts of most modern devices, including smartphones, laptops, game consoles, medical equipment, and cars. Smartphones use DRAM memory for active apps and NAND storage for photos, videos, and other files. Apple relies heavily on both types of chips, and Cook said the company is being squeezed by limited supply at the same time that consumer demand remains strong.
Cook said the company is especially focused on the DRAM market, where more supply is being directed toward high-bandwidth memory used in AI servers. He described the current market as one in which consumers want devices but chip makers are passing on “huge price increases.”
Since last year, the prices of memory and storage chips have both quadrupled after major technology companies increased spending on AI infrastructure. TechInsights expects those prices to keep rising into 2027.
Industry Shift
The chip supply chain is being reshaped by AI demand. Three companies dominate DRAM memory production: Samsung, SK Hynix, and Micron. NAND storage also comes from those firms, along with Kioxia and Sandisk. Their profits and stock prices have surged over the past year, showing how much the industry has benefited from the AI boom.
At the same time, memory makers are expanding production, but not fast enough to fully meet consumer-tech demand. Morgan Stanley forecasts that DRAM wafer capacity will grow 30% by 2027, yet consumer technology wafers could still fall up to 15% short of demand as suppliers prioritize specialized AI memory.
Cook said Apple is willing to use its balance sheet to help solve the supply issue, but he also made clear that the company will not try to build its own memory and storage factories. He said Apple wants to look at all supply options, including from Chinese companies, if restrictions allow.
Frequently Asked Questions (FAQ)
Q: Why is Apple planning price increases?
A: Apple says it is responding to surging costs for memory and storage chips.
Q: Which products could be affected first?
A: Cook did not name specific products, but Macs and iPads could see increases sooner.
Q: When might the changes happen?
A: Apple did not provide timing details, though its next major launch is expected in September.
Q: How much could the next iPhone Pro cost increase?
A: It is estimated that the added cost could be about $270.
Q: Why are chip prices rising so fast?
A: AI companies are buying large volumes of memory and storage chips for servers, tightening supply for consumer devices.
Emman has been writing technical and feature articles since 2010. Prior to this, he became one of the instructors at Asia Pacific College in 2008, and eventually landed a job as Business Analyst and Technical Writer at Integrated Open Source Solutions for almost 3 years.
