Apple is preparing to increase prices for some of its products as rising memory and storage chip costs put pressure on the company’s margins, according to comments from CEO Tim Cook in an interview with The Wall Street Journal.
The planned price increases come amid a global surge in demand for memory components driven by artificial intelligence infrastructure investments. The rapid expansion of AI data centers has intensified competition for memory chips, reducing supply available for consumer electronics manufacturers and pushing component prices significantly higher.
Tim Cook acknowledged that Apple has attempted to absorb the increased costs to protect customers from price hikes. However, he indicated that the situation has become increasingly difficult as suppliers continue to pass on higher costs.
The memory market has been particularly affected by the growing demand for high-bandwidth memory (HBM), a critical component used in AI servers. As chipmakers allocate more production capacity toward AI-focused memory products, supplies for consumer devices have tightened, creating upward pressure on prices across the electronics industry.
Industry groups representing automakers, retailers, electronics manufacturers, and other sectors recently warned that escalating memory chip demand could lead to substantial increases in consumer goods prices and create supply chain disruptions in the United States.
While Tim Cook did not specify when the price increases would take effect, how large they would be, or which Apple products could be affected, the timing is notable as Apple is reportedly preparing to launch its first foldable iPhone alongside the iPhone 18 Pro and iPhone 18 Pro Max in September.
Tim Cook also highlighted concerns over both memory and storage component availability, emphasizing the need for more balanced pricing and supply conditions for consumer electronics. He suggested that all potential supply sources should be considered, including international options, as the industry seeks to address shortages. To help improve supply conditions, Apple is willing to leverage its substantial cash reserves to support expanded memory production capacity, according to Cook. However, he clarified that the company has no plans to enter the memory manufacturing business by building its own memory or storage chip fabrication facilities.
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