Apple may soon increase the prices of its iPhones, iPads and Mac computers as the global artificial intelligence (AI) boom drives up the cost of crucial memory and storage chips, according to company chief executive Tim Cook. The development could have significant implications for consumers worldwide, particularly ahead of the launch of the anticipated iPhone 18 series later this year.
In a recent interview with The Wall Street Journal, Cook acknowledged that Apple is finding it increasingly difficult to absorb rising component costs and indicated that price hikes may be inevitable. He said the company had been trying to shield customers from the impact of soaring prices but admitted that the situation had become unsustainable. While he did not specify when the increases would take effect or which products would be affected first, industry analysts believe Apple’s premium devices could see higher prices in the coming months.
The surge in costs is being attributed largely to unprecedented demand for memory and storage chips from technology companies investing heavily in AI infrastructure and data centres. Firms such as Google, Microsoft, Meta and Amazon have significantly expanded their spending on AI projects, creating intense competition for semiconductor supplies. As a result, the prices of DRAM memory and NAND storage chips—essential components used in smartphones, laptops and tablets—have risen sharply over the past year.
Industry experts say Apple, despite its enormous purchasing power and long-standing relationships with suppliers, is not immune to these pressures. Research firm TechInsights has estimated that maintaining current profit margins could require Apple to substantially raise prices on future devices. Some projections suggest that the price of a top-end iPhone 18 Pro model could increase by as much as $270 if the company passes on the full impact of higher component costs to consumers.
Analysts believe Macs and iPads could face price revisions even before the next iPhone launch. Apple has already increased the starting price of certain Mac products in some markets, fuelling speculation that broader price adjustments may be on the horizon. The company has also indicated in previous earnings discussions that memory costs are expected to place increasing pressure on its business beyond the current quarter.
The growing demand for AI-powered features within Apple’s own ecosystem may further intensify the challenge. Future devices are expected to require more advanced memory configurations to support on-device AI capabilities, including enhanced versions of Siri and Apple Intelligence. This would increase Apple’s dependence on an already constrained supply chain.
While Apple has not announced any formal pricing changes, Cook’s remarks signal that consumers may need to prepare for costlier Apple products in the near future. The situation also highlights the wider impact of the global AI race, which is reshaping technology supply chains and driving up costs across the consumer electronics industry.
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