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Apple Says Device Price Increases Are Unavoidable

The company says surging memory‑chip costs from booming AI data‑center demand have left it unable to keep absorbing higher component prices.

Overview

  • Apple CEO Tim Cook told the Wall Street Journal on Thursday that the company can no longer fully shield customers from rising memory‑chip costs and that price increases are unavoidable.
  • The jump in prices is linked to rapid global build‑outs of AI data centers that have sharply increased demand for DRAM and NAND memory, forcing chip prices much higher.
  • Cook gave no timing, magnitude, or product‑level details for any price moves and the next plausible moment for changes is Apple’s usual fall product launch cycle.
  • Apple previously used long‑term supply contracts and product configuration changes to hold consumer prices steady, but those measures are now strained while chipmakers’ capacity expansions are slow.
  • The company is weighing all sourcing options, including Chinese state‑backed memory makers subject to U.S. export rules, and outside analysis suggests a comparable iPhone Pro could require roughly a $270 price bump to fully offset higher chip costs.