iPhone Price Hike: Apple CEO Tim Cook Confirms iPhones To Get Costlier; Mentions Reasons
Apple plans to raise product prices to offset surging memory and storage costs driven by the AI chip shortage. CEO Tim Cook described the situation as unsustainable, noting that AI data centres are prioritising DRAM supply. While specific timelines were not provided, analysts anticipate price increases across iPhones, Macs, and iPads soon.
Apple is preparing to increase the prices of its hardware lineup as the company struggles to absorb the soaring costs of memory and storage components. Outgoing CEO Tim Cook confirmed in a recent interview that despite the tech giant’s efforts to shield consumers from rising semiconductor costs, the current market environment has reached an unsustainable tipping point.
The escalating prices are primarily attributed to the global artificial intelligence boom. Data centre operators are aggressively securing massive supplies of high-bandwidth memory (HBM) and DRAM to power AI servers, creating a supply chain squeeze that has left consumer electronics manufacturers in fierce competition for the remaining inventory. Apple Products To Get Costlier? CEO Tim Cook Warns of Impending Price Hikes Amid Global Memory, Storage Chip Shortage Driven by AI Demand.
AI Demand Triggers Component Shortage
The rapid proliferation of AI technology has transformed memory chips into a critical, high-demand commodity. With chipmakers prioritising production for AI-specific workloads, the availability of components required for iPhones, iPads, and Mac computers has tightened significantly. This supply-demand imbalance has caused the cost of memory and storage chips to surge, placing immense pressure on Apple’s profit margins.
Apple Price Hikes Deemed 'Unavoidable', Clarifies Tim Cook
Tim Cook indicated that Apple, which has historically utilised its substantial buying power to secure stable pricing, can no longer mitigate these external cost increases alone. While specific details regarding which products will face price adjustments or the exact timeline for these changes remain undisclosed, the industry expects the upcoming iPhone 18 series to potentially feature higher price tags. iPhone Air 2 To Be Released in Spring 2027; Know What Changes To Expect.
Balancing Act for Future Growth
To address the supply crisis, Apple plans to utilise its cash reserves to help bolster memory supply chains, though the company has ruled out establishing its own manufacturing facilities for these components. As the tech landscape shifts, the company is looking for ways to stabilise pricing while navigating a market where AI infrastructure projects now take precedence over consumer device manufacturing.
(The above story first appeared on LatestLY on Jun 18, 2026 12:44 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).