Apple plans to raise the prices of its products as surging memory chip costs continue to increase pressure on the company, Chief Executive Officer Tim Cook said in an interview with The Wall Street Journal (19/06).

Cook said the price increases were "unavoidable" because the situation surrounding memory chip costs had become "unsustainable." He did not specify when prices would increase or which products would be affected.

It also remains unclear whether the expected iPhone 18, which is anticipated to launch in September, will be included in the price changes.

Memory Chip Supply Shortages Push Costs Higher

According to Cook, Apple has tried to protect customers from rising costs but can no longer absorb the increases passed on by suppliers.

"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," Cook said.

He added that limited supply and strong consumer demand are contributing to the problem.

"There's less supply at a time when consumers want devices and the memory guys are passing along huge price increases," Cook said.

Cook, who is scheduled to be replaced by John Ternus as Apple's CEO in September after 15 years in the role, said memory pricing and supply need to return to reasonable levels for consumer products.

The price of RAM, which is typically one of the least expensive computer components, has more than doubled since October 2025.

AI Demand and Helium Disruptions Affect Chip Market

Memory chips are key components used in smartphones and other smart devices. The rapid growth of artificial intelligence has increased demand for these chips, contributing to higher prices.

The conflict in Iran has also disrupted global helium supplies. Helium is an important gas used in semiconductor manufacturing, adding further pressure to chip production costs.

Research firm Omdia expects the average selling price of smartphones worldwide to rise by about 20% in 2026, reaching a record high.

Omdia smartphone market analyst Chiew Le Xuan told the BBC that Apple's new phones could cost up to $150 more than the iPhone 17 lineup because the company is expected to improve specifications to support new AI features.

He also said many smartphone manufacturers have already increased prices, reduced promotions, or lowered specifications to maintain profit margins.

"This is the new pricing reality, not a temporary spike," Chiew said.

Trump Says Apple Will Work With Intel on US Chip Production

Later, US President Donald Trump said Apple had agreed to work with Intel to manufacture chips in the United States.

"I decided to help Intel because we need to design and build our Chips right here in America," Trump wrote on his social media platform, Truth Social.

The BBC said it had contacted Apple and Intel for comment.

Last August, the Trump administration announced that the federal government would take a 10% stake in Intel.

Intel shares rose more than 10% when US stock markets opened on Thursday.

Technology Industry Faces Broader Cost Pressures

Other companies in the technology sector have also highlighted challenges related to rising chipmaking costs.

Taiwan Semiconductor Manufacturing Company (TSMC) told the BBC earlier this month that it would not rule out price increases as inflation continues to raise costs.

TSMC manufactures advanced chips designed by companies including Apple, Nvidia, and AMD.

Earlier this year, Samsung said shortages in memory chip supply could make electronic devices more expensive.

In April, Sony increased the price of its PlayStation 5 consoles by £90 in the United Kingdom and $100 in the United States because of "continued pressures in the global economic landscape."

Nintendo later announced it would raise the price of its Switch 2 beginning in September due to "changes in market conditions."

The iPhone 17 lineup has remained popular since its launch last September. Apple device sales increased by 17% in the first three months of 2026 compared with the same period a year earlier, supported by strong demand in China.

Earlier this year, Apple also removed the entry-level version of its Mac Mini computers, increasing the starting price by about $200.

PHOTO: GETTY IMAGES

This article was created with AI assistance.

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