Apple to raise product prices as AI-driven chip costs continue to climb

Apple is planning to increase the price of some of its products as the rising cost of memory chips continues to put pressure on the company’s manufacturing expenses. Speaking to The Wall Street Journal, Apple’s outgoing CEO Tim Cook said price hikes have become “unavoidable” as the cost of memory chips has reached unsustainable levels.

Apple has tried to absorb the higher costs to protect customers from price increases, but the company can no longer continue doing so. However, he did not reveal when the new prices would take effect or which Apple products would be affected, Cook told the business daily.

It also remains unclear whether the upcoming iPhone 18, expected to launch in September, will see a price increase.

Memory chips are a key component in smartphones, laptops and other electronic devices. Their prices have surged in recent months due to the rapid growth of artificial intelligence (AI), which has significantly increased demand for advanced chips while supply remains limited.

Cook reportedly added that Apple hopes memory prices and supply return to normal levels soon, saying the current situation is making it difficult to keep consumer products affordable. He is set to step down as Apple’s CEO in September after 15 years, with John Ternus expected to take over.

The issue is affecting the wider technology industry. Chipmaker TSMC has recently said it could not rule out price increases due to inflation, while Samsung has also warned that memory chip shortages may push up the prices of electronic devices, as per reports. The cost of RAM has more than doubled since October 2025.

Apart from AI demand, the conflict in Iran has disrupted the global supply of helium, an essential material used in semiconductor manufacturing, adding further pressure to chip prices. Despite these challenges, Apple reported strong sales growth in early 2026, driven largely by robust demand for its products in China.