Tech company Apple plans to increase the prices of its products to compensate for the sharp increase in costs for memory and storage chips. “Unfortunately, price increases are inevitable,” CEO Tim Cook said in an interview with The Wall Street Journal.
Source: The Wall Street Journal, Reuters
Memory chips are essential components in devices such as mobile phones. Due to the rise of AI, data centers require more and more chips and other components. This creates scarcity for consumer electronics companies and causes prices to rise sharply.
“Unfortunately, price increases are inevitable,” Cook said. “We are doing our best to limit the huge price increases passed on to us and have tried to protect our customers from the increases, but the situation has become untenable.”
“Supply is tight at a time when consumers are looking to buy devices and memory suppliers are passing on huge price increases,” said Cook, who will be succeeded as Apple CEO by John Ternus in September after 15 years in the role. Even the price of RAM, typically one of the cheapest computer components, has more than doubled since October 2025.
Record height
In addition to AI, the war between Israel and Iran also affects prices. For example, the war has disrupted the global supply of helium, a gas that is crucial for the production of semiconductors. As a result, the cost of computer chips has also increased.
According to research firm Omdia, the average sales price of smartphones worldwide will increase by about 20 percent to a record high by 2026.
Cook did not indicate when prices will increase or which products will be affected. It is currently unclear whether the price increases will affect the iPhone 18, which would be released in September.