Apple Plans Price Increases Amid AI-Driven Memory Chip Cost Surge

Apple is planning to raise prices on its products due to soaring memory chip costs, outgoing CEO Tim Cook announced, citing an AI-driven surge in semiconductor demand. In an interview with the Wall Street Journal, Cook stated that price increases are "inevitable" as the memory chip market has become "unsustainable," though he did not specify when increases would occur or which products would be affected. The timing raises questions about the anticipated September launch of the iPhone 18.

Memory chip prices have more than doubled since October 2025, driven by increased demand from artificial intelligence applications. Supply disruptions exacerbated by conflict in Iran, which has impacted global helium supplies essential for semiconductor manufacturing, have further elevated costs. Cook explained that Apple has attempted to absorb price increases for consumers, but the scale of cost pressures has become untenable. He will step down in September after 15 years as CEO, to be replaced by John Ternus.

Market research firm Omdia projects that global smartphone average selling prices will rise approximately 20 percent in 2026, reaching historic highs. Apple's iPhone 18 could command up to $150 more than the iPhone 17 series due to upgraded AI-capable specifications, according to analyst Chiew Le Xuan. The company has already increased the starting price of its Mac Mini by approximately $200 by discontinuing the entry-level model.

Apple is not alone in raising prices. President Donald Trump announced that Apple has agreed to collaborate with chipmaker Intel on domestic chip production in the United States, though neither Apple nor Intel has confirmed this. Following the announcement, Intel stock rose over 10 percent. Other technology giants including Samsung, Sony, TSMC, and Nintendo have similarly announced price increases or are considering them, citing cost pressures and market conditions. Samsung has warned of further price increases due to memory chip supply shortages, Sony raised PlayStation 5 prices by $100 in the US and £90 in the UK in April, and Nintendo announced September price increases for Switch 2.

Industry analysts view these price increases as a structural shift rather than temporary measures. TSMC executives have indicated willingness to raise prices amid inflationary cost pressures, while most smartphone manufacturers are simultaneously cutting promotions or reducing specifications to maintain profit margins. Despite these headwinds, Apple device sales grew 17 percent in the first quarter of 2026 compared to the previous year, driven by demand from China, particularly from the popular iPhone 17 series.