Apple to Raise Device Prices as AI‑Driven Chip Costs Surge
Apple CEO Tim Cook announced that the company will increase the prices of its products as the cost of memory chips it uses has surged. Cook told the Wall Street Journal that the situation around memory chips had become "unsustainable" and that the price increases were "unavoidable".
He said Apple is doing its best to "mitigate the huge increases that are being passed to us" and has tried to shield customers, but the supply situation, with less available memory at a time of high consumer demand, has left Apple with no choice. Cook confirmed that the chip cost rise is linked to the boom in artificial intelligence, which has driven up demand for faster, more powerful memory.
The price of RAM, typically one of the cheapest computer components, has more than doubled since October 2025. The increased cost has been compounded by the war in Iran, which has disrupted global helium supplies—an essential gas used to manufacture semiconductors.
According to market research firm Omdia, the average selling price of smartphones globally is expected to rise by around 20% in 2026, an all‑time high. Apple’s new phones are likely to cost up to $150 more than the iPhone 17s, as the company is expected to upgrade specifications to support emerging AI features. Industry analysts say this is the new pricing reality, not a temporary spike.
Apple’s new iPhone 18, slated for a September launch, could see price increases, but no specific dates or products have been announced. The company also recently removed the entry‑level Mac Mini, raising its starting price by around $200 (£150).
Other technology giants are also facing the same pressure: Samsung warned that memory chip supply shortages would raise electronic device costs, Sony has raised PlayStation 5 prices, and Nintendo is upping the price of the Switch 2.
Apple sales continue to grow, with the iPhone 17 line up 17% higher in the first quarter of 2026 compared with the previous year, driven by strong demand in China.
