Apple plans to raise prices on its products to offset surging memory and storage chip costs, Chief Executive Tim Cook said, as growing demand from artificial intelligence data centres strains global supplies of key components.
The planned increases come as technology companies compete for limited supplies of DRAM memory and NAND storage chips, pushing prices sharply higher across the consumer electronics industry.
“Unfortunately, price increases are unavoidable,” Cook told The Wall Street Journal. “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.”
AI Demand Fuels Memory Chip Shortage
The surge in AI infrastructure spending has intensified competition for memory and storage components, with major technology firms investing heavily in data centres and securing large chip supplies. As a result, consumer electronics manufacturers are facing significantly higher component costs.
Cook said Apple has attempted to absorb some of the increased costs but can no longer do so without affecting profitability. The company expects memory costs to remain elevated as suppliers prioritise chips used in AI servers.
Apple Yet to Reveal Timing and Scope
Cook did not specify when the price increases would take effect, how large they would be, or which products would be affected. However, analysts expect future iPhones, iPads and Macs could see higher price tags if component costs remain elevated.
Apple’s next major product launch is expected later this year, when the company is anticipated to unveil its new iPhone lineup. Industry observers are closely watching whether the higher costs will be reflected in upcoming devices.
Apple Seeks Long-Term Solutions
Cook said Apple would use its financial resources to help secure component supplies but ruled out manufacturing memory and storage chips itself. The company instead plans to continue working with suppliers to manage the ongoing shortage.
The announcement highlights the growing impact of the AI boom on the broader technology sector, where rising demand for specialised hardware is increasingly affecting the cost and availability of components used in consumer devices.
