Apple says product prices may go up because a key part used in its devices has become much more expensive. According to Apple CEO Tim Cook, the company is facing major cost pressure from memory and storage chips used in products like iPhones, Macs, and iPads.
The problem is mainly linked to the rapid growth of artificial intelligence (AI). As AI becomes more popular, companies are buying huge amounts of memory and storage chips to power AI systems and servers.
Apple CEO Tim Cook said in the interview that price increases can no longer be avoided. Cook told The Wall Street Journal that Apple has tried to absorb higher costs for as long as possible, but the situation has become too difficult to continue.
Apple tries to hold prices down, but suppliers are passing on large cost increases to Apple, making it harder for the company to keep prices unchanged.
The iPhone 18 and chip supply concerns: Apple’s next major product launch is expected in September, where the company is likely to unveil its new iPhone 18 lineup. Some Apple products could see price increases even before the new iPhones arrive.
The AI boom drives chip demand: Large AI data centers and servers are now consuming massive amounts of storage and memory chips, creating strong competition for supply. Apple is now finding it harder to secure enough chips.
Prices for memory and storage chips have surged dramatically. According to TechInsights cited by The Sun, DRAM and NAND prices have increased fourfold over the past year.
The sharp rise started after major tech companies boosted AI spending. Google, Microsoft, Meta, and Amazon raised their spending plans to invest more in AI technology and data centers.
Memory chip prices keep rising: Cook said there is not enough supply to meet demand. He explained that chip makers are raising prices while consumers still want to buy devices, creating a difficult situation for companies like Apple.
Apple wants memory chip prices to become more reasonable again.
