Tim Cook Warns Apple Price Increases Are 'Unavoidable' Due to AI Memory Crunch

Apple plans to raise prices on its products as soaring memory and storage chip costs continue to pressure margins, according to an exclusive interview with CEO Tim Cook in The Wall Street Journal.



"Unfortunately, price increases are unavoidable," Cook told the publication. "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." He described the ongoing supply crunch as a "hundred-year flood" unlike anything he has seen during more than four decades in the electronics industry.


According to the report, surging demand from AI companies has dramatically increased competition for memory and storage chips. Prices for DRAM memory and NAND storage have quadrupled over the past year as suppliers such as Samsung, SK Hynix, and Micron prioritize specialized hardware used in AI servers. TechInsights estimates that maintaining Apple's current profit margins under these conditions could add roughly $270 to the price of a future iPhone Pro model.

We previously noted that this global memory shortage was expected to affect consumer electronics through at least 2027. Morgan Stanley estimates that, as suppliers devote more production to AI-focused memory, silicon wafers allocated to consumer technology could fall as much as 15 percent short of demand despite planned capacity expansions.

Cook declined to specify which products will be affected or when any price increases might take effect. However, Apple recently raised the starting price of the Mac mini by removing its lowest-priced configuration. The company's next major product launch is expected to be the iPhone 18 lineup, which is rumored to include Apple's first foldable iPhone.

Apple also faces increasing DRAM requirements as it expands Apple Intelligence capabilities, including the revamped Siri experience announced at WWDC26. Cook said both pricing and supply of memory have become major concerns for consumer electronics makers as AI companies lock up inventory through long-term supply agreements backed by substantial prepayments.


When asked about potential solutions, Cook said Apple is prepared to use its balance sheet to help expand supplier capacity, though he ruled out building its own memory fabrication plants. He also suggested that all potential sources of supply should be considered, including Chinese memory manufacturers that currently face U.S. restrictions requiring licenses for American companies to work with them. Apple has historically leveraged its enormous purchasing power to secure favorable component pricing, but Cook acknowledged that the company's influence is being tested by unprecedented demand from AI infrastructure providers.

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