Apple CEO Warns Price Increases Unavoidable Amid Surge in Chip Costs

Apple customers may soon face higher prices for their devices as the company grapples with soaring costs for memory and storage chips.

Tim Cook told The Wall Street Journal that Apple has tried to absorb these increases but can no longer fully protect customers from higher prices. He did not specify when price adjustments will occur or which products will be affected.

“Unfortunately, price increases are unavoidable,” Cook said. “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.”

Apple’s next major product launch is expected in September, when the company is likely to unveil its iPhone 18 lineup.

The remarks come as artificial intelligence companies purchase massive quantities of memory and storage chips, according to the Wall Street Journal.

Research firm TechInsights estimates Apple would need to add about $270 to the next iPhone Pro model to maintain its profit margins.

Cook said DRAM chips are a key concern because they are increasingly used for AI servers.

“There’s less supply at a time when consumers want devices and the memory guys are passing along huge price increases,” Cook told the Wall Street Journal. “We definitely need memory pricing and supply to return to reasonable levels for consumer products. That’s the bottom line.”

Apple may use its cash reserves to help expand chip supply, but it does not plan to build its own memory factories.

“This is a hundred‑year flood,” Cook added. “I’ve never seen anything like it in any area in over 40 years.”

Apple announced earlier this year that Cook will step down on Sept. 1 after 15 years as chief executive. He will transition to executive chairman of the board, and longtime Apple veteran John Ternus, senior vice president of hardware engineering, will succeed him.

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