In an interview with The Wall Street Journal, outgoing Apple CEO Tim Cook acknowledged that the company will have to raise prices on its products due to surging demand for memory chips driven by the artificial intelligence (AI) boom. “Unfortunately, price increases are unavoidable,” he told the newspaper on Wednesday, adding that the company had “tried to shield customers from price hikes” but that this has become “unsustainable.”
Cook did not specify when prices would rise or which devices would be affected. For example, it remains unclear how the price of the iPhone 18, expected to launch in September, will be impacted. “Supply is lower while consumers want devices, and memory chip makers are raising prices sharply,” Cook remarked.
Citing estimates from research firm TechInsights, the Journal reported that Apple would need to raise the price of the iPhone Pro line by $270 to maintain current profit margins.
The rapid expansion of AI data centers has forced consumer electronics companies to compete fiercely for scarce key components, driving prices higher. Memory chip prices have risen at least 50% quarter-over-quarter since late 2025.
Cook has worked in the tech supply chain throughout his career, including stints at IBM and Compaq before joining Apple, and he said he has never seen price increases like this, calling it a “once-in-a-century flood.”
Both memory and storage costs are concerns for Apple, with particular emphasis on the DRAM (dynamic random-access memory) market due to AI infrastructure, Cook told the Journal. He noted that more supply is being allocated for high-bandwidth memory, which is heavily used in AI servers.
China has leading memory and storage companies, but U.S. firms may need specific licenses to work with them under national security laws. When asked whether restrictions should be loosened, Cook replied: “Everything needs to be on the table... I think we should look at all sources of supply.”
