Apple has warned that higher prices for its products may be unavoidable as the cost of memory chips continues to climb amid booming demand from the artificial intelligence industry.
Outgoing Apple Chief Executive Officer Tim Cook told The Wall Street Journal that the company can no longer fully absorb rising component costs, describing the current memory chip market as “unsustainable.”
“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,” Cook said.
Although Apple has not announced when price increases will take effect or which products will be impacted, the comments have raised questions about whether upcoming devices, including the highly anticipated iPhone 18 expected later this year, could carry higher price tags.
Memory chips are a crucial component in smartphones, laptops, tablets, and other consumer electronics. However, explosive growth in artificial intelligence technologies has dramatically increased demand for advanced semiconductors and memory products, creating supply shortages and pushing prices higher across the technology sector.
Cook noted that chip manufacturers have passed significant cost increases on to companies like Apple while supplies remain constrained.
“There’s less supply at a time when consumers want devices and the memory guys are passing along huge price increases,” he explained.
The pressure on semiconductor supplies extends beyond Apple. Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest contract chipmaker, recently acknowledged that inflation and rising production costs could eventually lead to higher chip prices. TSMC produces advanced semiconductors for major technology firms including Apple, Nvidia, and AMD.
Samsung has also warned investors that shortages in memory chip supplies could result in higher prices for consumer electronics throughout 2026.
Industry data shows that the price of RAM, one of the most widely used forms of computer memory, has more than doubled since October 2025. Analysts attribute the increase primarily to soaring AI-related demand, as data centers and AI developers compete for the same chip resources used in consumer devices.
Global supply chain disruptions have added further pressure. The ongoing conflict involving Iran has affected supplies of helium, a critical gas used in semiconductor manufacturing, contributing to higher production costs across the industry.
Despite these challenges, Apple’s business remains strong. The company reported a 17% increase in device sales during the first quarter of 2026 compared with the same period a year earlier, driven largely by robust demand in China and continued popularity of the iPhone 17 lineup.
Apple has already demonstrated a willingness to adjust pricing when necessary. Earlier this year, the company increased the price of its Mac Mini compact desktop computer by approximately $200.
Cook is set to step down as Apple’s CEO in September after 15 years leading the company. He will be succeeded by John Ternus, who will inherit both Apple’s strong market position and the challenges posed by rising component costs and growing competition in the AI era.
