Apple to Raise Prices Due to Surging Memory Chip Costs

Apple plans to raise the prices of its products as the cost of the memory chips it uses has surged, the technology giant's boss has said. Tim Cook, Apple's outgoing chief executive, told The Wall Street Journal (WSJ) that price increases are "unavoidable" as the situation around memory chips has become "unsustainable". He did not say when prices will rise or which products will be affected.

It is also unclear whether the price hikes will affect the iPhone 18, which is expected to be launched in September. Memory chips are essential components in smart devices like mobile phones, but the boom in artificial intelligence (AI) 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 is due to be replaced 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 cheapest computer components - has more than doubled since October 2025.

In addition to rising AI demand, the war in Iran has also disrupted the global supply of helium, a gas crucial in making semiconductors, adding to the cost of computer chips. The iPhone 17 has been popular since the lineup was launched last September. Sales of Apple devices grew by 17% in the first three months of 2026 compared to the same period a year ago, helped by strong demand in China.

The company raised the price of its Mac Mini compact computers by about $200 (£150) earlier this year. The rising costs of memory chips will have significant implications for the broader tech industry. As a key component in many devices, the increased cost of memory chips will likely be passed on to consumers, potentially slowing demand.

For developers and businesses, this could mean higher costs for production and deployment of AI-powered applications. For consumers, this may result in more expensive devices and potentially limited access to affordable technology. Moreover, the impact on Apple's pricing strategy will be closely watched, as the company's product lineup is widely popular and highly anticipated.

The question remains whether other tech giants will follow suit in raising prices, and how this will affect the competitive landscape of the industry. As the demand for AI-powered devices continues to grow, the industry will need to adapt to the changing costs of key components and find ways to balance innovation with affordability.