Apple is set to increase the prices of its products after the cost of memory chips surged to an “unsustainable” level, the company’s outgoing chief executive has said.
Tim Cook, who will step down in September after 15 years at the helm, told the Wall Street Journal that price rises were “unavoidable” because the situation around memory chips had become unsustainable. He did not say when prices would rise or which products would be affected, leaving uncertainty over whether the forthcoming iPhone 18, expected in September, will cost more.
“Apple to raise prices as memory chip costs surge; Tim Cook says hikes 'unavoidable'.”
The price of Ram – typically one of the cheapest computer components – has more than doubled since October 2025, driven by a boom in artificial intelligence that has pushed up demand for memory chips. The war in Iran has also disrupted the global supply of helium, a gas crucial in making semiconductors, adding to costs.
“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 said. “There’s less supply at a time when consumers want devices and the memory guys are passing along huge price increases.”
Cook added: “We definitely need memory pricing and supply to return to reasonable levels for consumer products. That’s the bottom line.”
The wider smartphone industry is bracing for a sharp rise in prices. Research firm Omdia predicts the average selling price of smartphones globally will rise by about 20% in 2026 to an all-time high. 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, Omdia analyst Chiew Le Xuan told the BBC. “This is the new pricing reality, not a temporary spike,” he said.
Meanwhile, US President Donald Trump said Apple had agreed to work with chipmaker Intel to make its chips in the United States. “I decided to help Intel because we need to design and build our Chips right here in America,” he wrote on his social media platform Truth Social. Intel’s shares rose more than 10% on Thursday when US stock markets opened. The Trump administration announced in August 2025 that it would take a 10% stake in Intel.
The BBC has contacted Apple and Intel for comment.