Apple says it will raise prices as AI demand drives up memory chip costs
Apple plans to raise prices to offset a sharp rise in the cost of memory and storage chips, CEO Tim Cook said in remarks reported by the BBC and to the Wall Street Journal. Prices for those chips have roughly quadrupled over the past year, driven by AI companies buying up supply, with memory costs rising around 90 percent between the last quarter of 2025 and the first quarter of 2026.
“We’ve been trying to shield our customers from the increases, but the situation has become unsustainable,” Cook said. He declined to specify the timing, size, or product scope of the hikes, leaving open whether they will reach the iPhone 18 expected in September.
The disclosure shows AI infrastructure demand reaching consumers who never buy a data-center chip: memory is a commodity input shared across phones, PCs, and game consoles, so a buildout-driven squeeze on supply lands on retail prices. Other smartphone and PC makers have already raised prices for the same reason, suggesting an industry-wide pass-through rather than a company-specific problem.