Apple Signals Product Price Hikes as AI Memory Costs Surge

Apple is preparing to increase prices across some of its most popular products, including iPhones and iPads, as rising memory component costs driven by the artificial intelligence boom continue to pressure the company’s expenses. Speaking to The Wall Street Journal on Wednesday, Apple CEO Tim Cook said the company has worked to protect customers from higher prices for as long as possible, but maintaining that approach is no longer sustainable.

While Cook confirmed that price increases are inevitable, he did not specify when the changes would take effect or how large they would be. According to an analysis cited by The Wall Street Journal and based on projections from TechInsights, the upcoming iPhone 18 Pro could see its price rise by as much as $200, bringing the device’s starting price to approximately $1,299.

Cook also declined to provide a timeline for the expected adjustments. However, a Wall Street Journal reporter involved in the analysis suggested in a LinkedIn post that consumers could begin seeing higher prices before Apple’s annual fall iPhone launch event, which is currently anticipated to take place on September 9.

The broader consumer electronics industry has been facing mounting cost pressures in recent months as memory chip prices continue to climb. The surge is largely linked to strong demand from artificial intelligence companies, which require vast quantities of memory for servers operating in large-scale data centers. This growing competition for supply has pushed component costs higher for manufacturers of smartphones, laptops, and gaming consoles.

Addressing the issue, Cook told the Journal that memory suppliers have been passing on substantial price increases at a time when demand for consumer devices remains strong and supply remains constrained. He emphasized that Apple would like to see pricing return to levels that are more reasonable for consumer products.

Apple has already responded to rising component costs in other areas of its business. In March, the company increased prices on several MacBook models by as much as $400. During Apple’s second-quarter earnings call in April, Cook said the company had managed to partially offset higher inventory expenses earlier in the year but warned that the ongoing memory price crunch was expected to have a growing impact on Apple’s operations beginning in June.