Apple to raise prices as AI boom drives up chip costs

2026-06-18 08:30:00, Kosova & Bota CNA

Apple plans to raise the prices of its products as the cost of the memory chips it uses has risen sharply, the tech giant's chief executive said.

Tim Cook, the outgoing CEO of Apple, told The Wall Street Journal (WSJ) that price increases are "inevitable" as the situation around memory chips has become "unstable."

He did not say when the price hikes would occur or which products would be affected. It is also unclear whether the price hikes will affect the iPhone 18, which is expected to launch in September.

Memory chips are essential components in smart devices like mobile phones, but the artificial intelligence (AI) boom has driven up their prices in recent months.

"We are doing our best to mitigate the large increases that are being passed on to us and we have tried to protect our customers from these increases, but the situation has become unsustainable," Cook told the WSJ.

"There is less supply at a time when consumers want devices and memory manufacturers are avoiding big price increases," said Cook, who is expected to be replaced by John Ternus as Apple CEO in September after 15 years in the role.

"Definitely, memory prices and supply need to return to reasonable levels for consumer products. That's the goal."

Cook's comments come as other tech giants have highlighted the pressure on the chip manufacturing industry.

In an exclusive interview with the BBC this month, Taiwan Semiconductor Manufacturing Company (TSMC) did not rule out price increases as inflation increased its costs.

TSMC produces the most advanced chips designed by companies such as Apple, Nvidia, and AMD.

Earlier this year, Samsung said it expects a shortage of memory chips to drive up prices for electronic devices.

The price of RAM - usually one of the cheapest computer components - has more than doubled since October 2025.

In addition to the growing demand for artificial intelligence, the war in Iran has also disrupted the global supply of helium, a gas essential in semiconductor production, adding to the cost of computer chips.

The iPhone 17 has been popular since the line was launched last September. Apple device sales rose 17% in the first three months of 2026 compared to the same period a year earlier, helped by strong demand in China.

The company raised the starting price of its compact Mac Mini computers by about $200 (£150) earlier this year.