Tim Cook admits iPhone, Mac, and iPad prices will rise as memory chip costs spiral due to AI demand.
Apple CEO Tim Cook has confirmed the company will raise prices on its products, citing an "unprecedented" surge in memory chip costs driven by the AI boom. In an interview with The Wall Street Journal published Wednesday, Cook said the situation has become "unsustainable" and that Apple can no longer absorb the higher component costs.
"Unfortunately, price increases are unavoidable," Cook told the Journal. "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."
Why memory costs are skyrocketing
The global memory shortage is being driven by surging demand for AI infrastructure. Each new generation of AI chips — particularly Nvidia's data-center processors — requires substantially more high-bandwidth memory (HBM), leaving less supply for consumer devices like smartphones, laptops, and tablets.
Memory maker Micron has seen its stock surge roughly 570% over the past year as AI demand for DRAM has exploded.
Cook pointed specifically at the HBM market in his interview. "There's less supply at a time when consumers want devices and the memory guys are passing along huge price increases," he said. "We definitely need memory pricing and supply to return to reasonable levels for consumer products. That's the bottom line."
Price hikes already happening
Apple has already raised the effective starting price of the Mac Mini by discontinuing its base storage configuration. Microsoft projected 90 billion in capex for 2026, with CFO Amy Hood attributing 5 billion to higher component prices.
What this means for consumers
Cook is stepping down as CEO on September 1, with longtime hardware chief John Ternus taking over. For consumers, the message is clear: Apple products are about to get more expensive. The global memory shortage shows no signs of easing, and the AI boom that kicked it off is still accelerating.
