Apple said product prices may rise as key components used in its devices become more expensive. according to Apple CEO Tim CookAccording to Tim Cook in an interview with the Wall Street Journal, the company is facing significant cost pressure from the memory and storage chips used in products such as iPhones, Macs and iPads.
This problem is mainly related to the rapid development of artificial intelligence (AI). As artificial intelligence becomes more popular, companies are buying large amounts of memory and storage chips to power AI systems and servers. Apple CEO Tim Cook said in an interview that price increases are inevitable. Cook told the Wall Street Journal that Apple has been trying to absorb higher costs for as long as possible, but that the situation has become unsustainable.
Apple tries to drive down prices
Cook said Apple has been working hard to protect customers from higher prices. However, he explained that suppliers are passing on significantly increased costs to Apple, making it harder for the company to keep prices the same. Apple has not yet confirmed when the price will increase. Cook did not provide details about the timing of the increase, the scale of the increase or which products would definitely be affected.
iPhone 18 and chip supply concerns
Apple’s next major product launch is expected in September, when the company is likely to unveil its new iPhone 18 series. Prices for some Apple products may rise even before the new iPhones hit the market. The Wall Street Journal reports that Macs and iPads may become more expensive faster.
AI boom drives chip demand
Large-scale AI data centers and servers now consume large amounts of storage and memory chips, creating fierce supply competition. Apple is now finding it more difficult to get enough chips. Prices for memory and storage chips have risen sharply.
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According to The Sun, citing TechInsights, DRAM and NAND prices have increased fourfold in the past year. That number started rising sharply after major tech companies increased spending on artificial intelligence. GoogleMicrosoft, Meta and Amazon have increased their spending plans and increased investment in artificial intelligence technology and data centers.
Memory chip prices continue to rise
Cook said supply is not enough to meet demand. He explained that chipmakers are raising prices while consumers still want to buy devices, causing difficulties for companies like Apple. Apple hopes memory chip prices will become more reasonable again.
iPhone 18 Pro could cost more
Apple says this strategy can’t continue forever. According to the Wall Street Journal, the additional costs are too great for the company to bear on its own. A Wall Street Journal calculation shows that the iPhone 18 Pro could cost about $1,299, about $270 more than the current list price, due to higher parts and manufacturing costs. This growth will be driven by more expensive memory chips, new artificial intelligence-related features, camera upgrades and other production costs.
Artificial intelligence features are increasing the amount of memory required inside smartphones. This increases Apple’s production costs because advanced AI features require more DRAM. Cook described the situation as unlike anything he had seen before. He said that in more than 40 years of working in technology, he has never seen such extreme fluctuations in memory and storage prices. Cook likened the current market conditions to a once-in-a-century disaster. He called the situation a “hundred-year flood” to emphasize how unusual and serious it was.
Apple said Artificial Intelligence Boom This has created a shortage of memory and storage chips, causing prices to skyrocket. Tim Cook warned in an interview with the Wall Street Journal that Apple may soon have to raise prices on products like the iPhone 18 Pro because the company can no longer afford all the additional costs.
