Apple is set to increase the prices of its products as the cost of memory chips surges, the company’s outgoing chief executive has warned. Tim Cook told the Wall Street Journal that price rises were “unavoidable” and the situation around memory chips had become “unsustainable”. He did not specify when prices would rise or which products would be affected, leaving consumers uncertain whether the iPhone 18, expected in September, will cost more.
The price of Ram – typically one of the cheapest computer components – has more than doubled since October 2025, driven by the boom in artificial intelligence. The surge has been compounded by the war in Iran, which disrupted the global supply of helium, a gas crucial in making semiconductors. Cook said: “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.”
“Apple to raise prices as memory chip costs surge; Tim Cook calls situation 'unsustainable'.”
Apple’s new phones are likely to cost up to $150 more than the iPhone 17s as the firm upgrades specifications to support new AI features, according to Omdia smartphone market analyst Chiew Le Xuan. Most smartphone brands have already raised prices, pulled back on promotions or cut specifications to protect margins. “This is the new pricing reality, not a temporary spike,” Chiew said. The average selling price of smartphones globally is expected to rise by around 20% in 2026 to an all-time high, according to Omdia.
Cook, who is due to be replaced by John Ternus as Apple’s CEO in September after 15 years in the role, added: “There’s less supply at a time when consumers want devices and the memory guys are passing along huge price increases. We definitely need memory pricing and supply to return to reasonable levels for consumer products. That’s the bottom line.”
Separately, US President Donald Trump said Apple had agreed to work with chipmaker Intel to make its chips in the US. “I decided to help Intel because we need to design and build our Chips right here in America,” he wrote on Truth Social. Intel’s shares rose more than 10% when US stock markets opened on Thursday. In August last year, the Trump administration announced the federal government would take a 10% stake in Intel. The BBC has contacted Apple and Intel for comment.