Apple raises iPhone prices amid AI-driven memory-chip cost surge
Apple will raise prices for its next-generation iPhones and other products, chief executive Tim Cook warned on Wednesday, citing an unsustainable surge in memory-chip costs driven by the artificial intelligence boom. Speaking to *The Wall Street Journal* in his final interview before leaving office, Cook said Apple can no longer absorb the rising expenses and must pass some of them on to consumers, marking a rare admission that inflationary pressures are forcing the company to rethink its pricing strategy.
The decision comes as memory-chip prices have climbed sharply in 2026, with suppliers struggling to meet demand from AI data centres and high-performance computing applications. Cook described the situation as “unsustainable,” telling the *Journal* that Apple’s ability to absorb these costs has reached its limit. “The explosion in memory-chip costs is real, and it’s here to stay,” he said. “We have to make choices, and one of them is to adjust our pricing.” The remarks were echoed across European media on Thursday, with outlets in Belgium, Estonia, Germany, and Romania all reporting the same core message from the outgoing CEO.
Industry analysts say the price increases will likely affect the entire iPhone lineup, including the highly anticipated iPhone 18 Pro and the company’s first foldable model, which is expected to launch later this year at around $2,000. Cook’s comments follow months of speculation about Apple’s pricing strategy amid broader inflation in the tech sector. In an interview with *Euronews*, he warned that the trend could ripple across the industry, raising concerns about broader inflation in technology products.
The announcement arrives as Apple prepares for a leadership transition, with Cook set to step down after more than a decade at the helm. His successor will inherit a company facing mounting cost pressures, from memory chips to advanced components for AI-capable devices. While Apple has historically maintained premium pricing, the shift signals a pragmatic response to market realities. “This is not a decision we take lightly,” Cook told the *Journal*. “But we have to balance innovation with affordability.”
The move also underscores the far-reaching impact of the AI revolution on global supply chains. Memory chips, essential for AI training and inference, have become a bottleneck, with prices for high-bandwidth memory (HBM) soaring by more than 200% in some segments this year. Apple’s decision to raise prices reflects a broader industry trend, as companies across the tech sector grapple with the financial fallout of the AI boom. Analysts say the shift could accelerate consolidation in the semiconductor industry, with larger players gaining further advantage over smaller competitors.
For consumers, the price hikes mean that upgrading to the latest iPhone will come at a higher cost, particularly for flagship models. The first foldable iPhone, rumored to launch in the autumn, is now expected to carry a starting price of $2,000, according to Romanian tech outlet *Digi24* . While Apple has not yet confirmed specific pricing, Cook’s remarks suggest that the increases will be applied across the board, from the iPhone 18 series to Macs and other devices.
The news comes as Apple faces increasing competition in the AI space, with rivals like Google and Microsoft investing heavily in on-device AI capabilities. Cook’s warning about rising costs may also signal a broader strategic shift, as Apple seeks to balance its premium brand with the realities of a more expensive supply chain. For now, consumers will have to weigh the benefits of the latest iPhone against the higher price tag, as Apple navigates an era of unprecedented technological and economic change.
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