Apple is planning to raise the prices of its products after the cost of memory chips became “unsustainable”, the outgoing chief executive Tim Cook has told the Wall Street Journal. Cook said the price increases were “unavoidable” as the surge in demand for artificial intelligence has driven up memory chip costs. The price of Ram – typically one of the cheapest computer components – has more than doubled since October 2025.
Cook did not say when prices would rise or which products would be affected, and it remains unclear whether the iPhone 18, expected in September, will be hit. He said Apple had been trying to “shield our customers” but the situation was unsustainable. “There’s less supply at a time when consumers want devices and the memory guys are passing along huge price increases,” he said.
“Apple will raise prices due to surging memory chip costs, CEO Tim Cook says, calling the situation 'unsustainable'.”
The crisis has been compounded by the war in Iran, which has disrupted the global supply of helium, a gas crucial for making semiconductors. Speaking to the WSJ, Cook warned: “We definitely need memory pricing and supply to return to reasonable levels for consumer products.”
Later, US President Donald Trump announced that 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. The BBC has contacted Apple and Intel for comment. In August last year, the Trump administration took a 10% stake in Intel.
Cook is due to be replaced by John Ternus as Apple’s CEO in September after 15 years in the role. The average selling price of smartphones globally is expected to rise by around 20% in 2026 to an all-time high, according to research firm Omdia. Apple’s new phones are likely to cost up to $150 more than the iPhone 17s, as the firm is expected to upgrade specifications to support new AI features, Omdia’s smartphone market analyst Chiew Le Xuan told the BBC. Most smartphone brands have already raised prices, pulled back on promotions or cut specifications to protect profit margins. “This is the new pricing reality, not a temporary spike,” Chiew said.