Apple plans to raise product prices,CEO Tim Cook confirmed,citing soaring memory chip costs . The outgoing leader called current situation "unsustainable," signaling price hikes as demand for AI drives chip prices up.
Cook,who John Ternus will replace in September after 15 years,didn't say when prices go up or which products hit. Speculation swirls around iPhone 18 launching in September. Consumers wait for price details.
Memory chips,crucial for devices like smartphones,have surged in price recently. Cook said Apple tried to absorb costs to protect customers but it's getting tough. "We're doing our best to mitigate the huge increases that are being passed to us," he told Wall Street Journal. "There's less supply at a time when consumers want devices and the memory guys are passing along huge price increases." He stressed need for memory pricing and supply stability for consumer products .
Since October 2025,RAM prices have more than doubled . Driving this surge: rising AI demand,plus geopolitical tensions like Iran conflict disrupting helium supplies for semiconductors.
Omdia predicts smartphone prices could rise 20% in 2026,an all-time high. Analysts say Apple's new phones might cost $150 more than iPhone 17,as company likely boosts specs for new AI features .
Other phone makers already responded to cost hikes—raising prices,cutting promos,scaling back specs to keep profits. "This is pricing reality now,not a temporary spike," said Chiew Le Xuan,an Omdia smartphone analyst.
Chip industry pressure isn't just on Apple. TSMC,the biggest chipmaker,may raise prices too as inflation hits costs. TSMC makes advanced chips for big names like Apple,Nvidia,AMD. Samsung earlier warned memory chip shortages would push up device prices .
In gaming,Sony upped PlayStation 5 prices by £90 in UK,$100 in US,citing economic pressures. Nintendo announced a Switch 2 price hike for September,due to "market conditions."
Despite hurdles,Apple saw a 17% sales bump in early 2026 from strong China demand. Earlier this year,company also axed its entry-level Mac Mini,raising base price by $200. How will market react…?
