Apple plans to raise prices for its products as surging memory chip costs driven by artificial intelligence demand put pressure on the technology giant, according to the Wall Street Journal.
Apple CEO Tim Cook told the Journal on Wednesday that price increases were “unavoidable” as the situation around memory chips had become “unsustainable,” though he did not specify when prices would rise or which products would be affected.
It remains unclear whether the increases will apply to the iPhone 18 lineup, expected to be launched in September.
Memory chips are key components in smartphones, computers and other smart devices, but demand from AI infrastructure has tightened supply and pushed up prices in recent months.
The price of RAM, usually among the cheaper computer components, has more than doubled since October 2025, the report said.
Cook said Apple had tried to protect customers from higher costs but was facing major increases from suppliers.
The global semiconductor industry has also been affected by disruptions linked to the war in Iran, which has hit helium supply, a gas used in chip manufacturing.
The average selling price of smartphones worldwide is expected to rise around 20% in 2026 to a record high, according to BBC, citing research firm Omdia.
Other technology firms have also warned of cost pressures.
Taiwan Semiconductor Manufacturing Company (TSMC), which produces advanced chips designed by Apple, Nvidia and AMD, has not ruled out price increases, while Samsung earlier warned that memory chip shortages could make electronic devices more expensive.
Sony raised PlayStation 5 prices in the UK and US in April, and Nintendo said it would increase the price of its Switch 2 from September due to changing market conditions.
Apple device sales rose 17% in the first quarter of 2026 from a year earlier, supported by strong demand in China, while the company earlier this year removed the entry-level Mac Mini option, effectively raising its starting price by about $200.
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