Apple Warns Device Prices Will Rise as Memory Chip Costs Surge

Overview

• Apple CEO Tim Cook told the Wall Street Journal that price increases are inevitable because higher memory and storage chip costs have made current pricing unsustainable for the company.
• Cook singled out RAM as the bigger concern, saying demand for chips used in artificial intelligence and datacenter gear has cut the supply available for phones, tablets and laptops.
• The company has not announced any specific price changes or a timing for increases and said it is working to mitigate effects on customers.
• Apple said it may deploy cash resources and negotiate with suppliers to add capacity and ease shortages rather than immediately pass all costs to buyers.
• Industry analysts cited in coverage project the memory squeeze could last into mid-2027 and say that, if Apple preserves margins, some models could see notable price jumps before the next iPhone cycle.