Apple warns price rises are 'unavoidable' as memory chip costs surge

Apple is preparing to raise the prices of its products after a sharp and sustained surge in memory chip costs, outgoing Apple Chief Executive Officer Tim Cook has warned. Cook described the situation as "unsustainable" and said price increases are now "unavoidable," though he stopped short of specifying which products will be affected or when the hikes will take effect. Whether the increases will extend to the iPhone 18 — expected to launch in September — remains unclear.

Cook's warning to customers

Cook made the remarks in an interview with The Wall Street Journal, acknowledging that Apple had been attempting to absorb rising costs rather than pass them on to consumers. "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," he said. The comments mark one of the most direct acknowledgements yet from Apple's leadership that customers will soon feel the impact.

What is driving costs up

Cook pointed to a combination of constrained supply and soaring demand as the root of the problem. "There's less supply at a time when consumers want devices and the memory guys are passing along huge price increases," he said. The boom in artificial intelligence has been a key driver of memory chip demand in recent months, pushing up the cost of components that are essential to smartphones and other smart devices.

Cook was direct about what needs to happen next. "We definitely need memory pricing and supply to return to reasonable levels for consumer products. That's the bottom line," he said.

Wider pressures on chip supply

The price of RAM — typically one of the cheapest components in a computer — has more than doubled since October 2025. Compounding the AI-driven demand surge, the war in Iran has disrupted the global supply of helium, a gas that plays a critical role in the manufacturing of semiconductors, further inflating the cost of computer chips. The combination of these factors has created a supply crunch that Apple says it can no longer absorb alone.

Apple's recent price moves and sales figures

Apple has already begun adjusting pricing in some areas, having raised the price of its Mac Mini compact computers by approximately $200 (£150) earlier this year. Despite the cost pressures, demand for Apple devices has remained strong — sales grew by 17% in the first three months of 2026 compared with the same period a year earlier, aided by robust performance in China. The iPhone 17 lineup, launched last September, has also proven popular since its release.

Leadership change on the horizon

Cook, who has led Apple for 15 years, is set to hand over the chief executive role to Apple Executive John Ternus in September. His candid remarks to the WSJ about the pricing outlook come as the company navigates one of the more challenging supply environments in recent memory. The timing of his departure coincides with what is expected to be a pivotal period for Apple's pricing strategy and product roadmap.