Apple customers could see price increases for their favorite devices due to the rising costs of memory and storage chips, outgoing CEO Tim Cook revealed recently. The surge in demand driven by AI technology has led to a worldwide shortage, impacting Apple's supply chain.
Unavoidable Price Increases
In a Wall Street Journal interview, Cook acknowledged that these price hikes are inevitable. Despite efforts to manage the escalating chip costs, which have quadrupled since last year, Cook described the situation as 'unsustainable.' While he did not specify which products would be affected or the timing of these increases, the warning has been sounded before. In April, after announcing record quarterly sales, Cook cautioned that these higher costs could affect Apple’s future business results. Incoming CEO John Ternus echoed these concerns that month.
iPhone Likely to Be Affected
Memory supply experts informed the Financial Times that the iPhone would almost certainly face price hikes. Apple typically introduces its new iPhone models in September, providing a platform to announce any price changes. However, the iPhone is not the only device at risk as Apple products like the Mac, iPad, Apple Watch, and Apple Vision Pro, which also rely on memory (DRAM) and storage (NAND) chips, could be affected.
Research firm TechInsights provided an estimate to the WSJ, suggesting that Apple might need to add $270 to the next iPhone Pro to maintain its profit margins. The iPhone 17 Pro currently starts at $1,099.
AI's Mixed Impact on Apple
AI's impact on Apple has been mixed, with the company under pressure to define its AI strategy for its devices. Earlier this year, Apple settled a $250 million lawsuit over false advertising related to undelivered AI features promised two years prior. At its Worldwide Developers Conference earlier this month, Apple demonstrated progress on those promises, including a Siri overhaul. However, increased on-device processing could drive further demand for memory, likely leading to higher consumer prices for Apple products.
Source: https://techcrunch.com/2026/06/17/ai-is-hurting-apple-in-more-ways-than-one-it-may-force-iphone-price-increases/
