Apple’s outgoing CEO Tim Cook has warned that price increases on its products are “unavoidable” as the cost of memory chips surges, driven by the artificial intelligence boom. In an interview with The Wall Street Journal, Cook said the situation around memory chips has become “unsustainable” – but stopped short of saying when prices will rise or which products will be affected.
“We’re doing our best to mitigate the huge increases that are being passed to us, and we’ve been trying to shield our customers from the increases, but the situation has become unsustainable,” Cook told the WSJ. “There’s less supply at a time when consumers want devices and the memory guys are passing along huge price increases.”
“Apple's outgoing CEO Tim Cook says price rises are 'unavoidable' as AI demand drives up memory chip costs.”
The price of RAM – typically one of the cheapest computer components – has more than doubled since October 2025, as the surging demand for artificial intelligence chips eats up global supply. The war in Iran has also disrupted the global supply of helium, a gas crucial in making semiconductors, adding further cost pressure.
Cook, who is due to be replaced by John Ternus as Apple’s chief executive in September after 15 years at the helm, did not address whether the iPhone 18 – expected to launch that same month – would be hit by the hikes. The company already raised the price of its Mac Mini compact computers by about $200 (£150) earlier this year.
The warning from Apple comes amid broader industry strain. Taiwan Semiconductor Manufacturing Company (TSMC), which makes the most advanced chips for Apple, Nvidia and AMD, would not rule out price increases in an exclusive BBC interview this month, as inflation pushed up its costs. Earlier this year, Samsung also said it expects memory chip supply shortages to raise the prices of electronic devices.
Apple’s latest iPhone 17 lineup, launched last September, has proved popular. Sales of Apple devices grew by 17% in the first three months of 2026 compared with the same period a year ago, helped by strong demand in China. But Cook made clear that the company cannot continue absorbing the rising costs. “We definitely need memory pricing and supply to return to reasonable levels for consumer products,” he said. “That’s the bottom line.”
With memory chip prices showing no sign of easing, the question now is how much more customers will have to pay – and which products will cost them most.