Apple CEO Tim Cook has confirmed that price increases across the company’s product lineup are imminent due to a global memory chip shortage. In an exclusive interview with The Wall Street Journal, Cook stated, “Unfortunately, price increases are unavoidable,” adding that the situation has become unsustainable despite efforts to shield customers from rising costs.
Cook described the memory chip crisis as “a hundred-year flood,” emphasizing that he has never encountered a similar situation in over 40 years in the industry. The shortage is primarily driven by increased demand for DRAM and NAND memory chips from AI data centers, which are consuming supplies from manufacturers like Micron Technology, Samsung Electronics, and SK Hynix. Morgan Stanley analyst Joseph Kim reported that memory prices have surged more than sixfold over the past year.
Regarding Apple’s approach, Cook noted that the company is willing to utilize its financial resources to bolster memory supply. “We are willing to utilize our financial resources to contribute to the solution,” he said.
Bloomberg’s Mark Gurman indicated on social media that Apple’s price hikes are “fairly imminent,” stating there is “no other reason to flag them now.” He specified that these increases may not be seasonal promotions and could coincide with Apple’s back-to-school promotion, potentially launching as soon as next week.
Research firm TechInsights estimates that the price of the iPhone 18 Pro could rise to around $1,299, up from its current price of $1,099. Additionally, the BBC reported projections from research firm Omdia, which anticipates the average global selling price of smartphones could rise approximately 20% by 2026, with new Apple devices potentially costing up to $150 more than the current iPhone 17 series.
Intel CEO Lip-Bu Tan has predicted that the industry may not experience relief from the chip shortage until 2028, while Synopsys CEO Sassine Ghazi stated that the current chip crunch is likely to extend into 2027.
