Apple Plans Price Hikes Due to Memory Chip Cost Surge
Apple intends to raise the prices of its products as the cost of memory chips it relies on has significantly increased, according to the company's outgoing chief executive.
Tim Cook told The Wall Street Journal (WSJ) that price increases are "unavoidable" given that the current situation surrounding memory chips has become "unsustainable."
He did not specify the timing of the price increases or which products would be affected. It also remains unclear whether the anticipated price adjustments will impact the iPhone 18, expected to launch in September.
Memory Chip Demand and Supply Challenges
Memory chips are critical components in smart devices such as mobile phones. However, the recent surge in artificial intelligence (AI) applications has driven up their prices in recent months.
"We're doing our best to mitigate the huge increases that are being passed to us, and we've been trying to shield our customers from the increases, 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 will be succeeded 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 least expensive computer components, has more than doubled since October 2025.
Besides the rising demand from AI, the ongoing war in Iran has disrupted the global supply of helium, a gas essential in semiconductor manufacturing, further increasing the cost of computer chips.
Apple's Market Performance and Recent Price Changes
The iPhone 17 has remained popular since its launch last September. Apple’s device sales increased by 17% in the first quarter of 2026 compared to the same period in the previous year, driven in part by strong demand in China.
Earlier this year, the company raised the price of its Mac Mini compact computers by approximately $200 (£150).
