Apple customers could soon face higher prices for iPhones, Macs, and other devices as the company struggles to absorb soaring memory-chip costs driven by the global artificial intelligence boom, Chief Executive Officer Tim Cook has warned.
In an interview published Wednesday by The Wall Street Journal, Cook said rising semiconductor costs have reached a point where price increases are becoming "unavoidable," signaling growing pressure on one of the world's largest technology companies.
The comments come as demand for memory chips continues to surge amid rapid investments in artificial intelligence infrastructure, data centers, and advanced computing systems, creating supply constraints across the global semiconductor market.
"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 told the newspaper.
AI Boom Reshapes Semiconductor Market
The rapid expansion of artificial intelligence technologies has significantly increased demand for memory chips used in AI servers, cloud computing platforms, and consumer electronics.
Industry analysts say AI companies and large data-center operators are now competing directly with smartphone and computer manufacturers for access to critical components, driving prices sharply higher.
According to estimates from investment bank Morgan Stanley, memory-chip prices have increased more than sixfold over the past year as manufacturers struggle to keep pace with growing demand.
The surge has affected key components such as DRAM chips, which provide short-term memory, and NAND flash chips used for long-term storage in smartphones, laptops, and tablets.
Potential Impact on Consumer Electronics
While Apple has not disclosed which products could see price increases, analysts believe the company's flagship devices—including iPhones, Mac computers, and iPads—are likely to face the greatest cost pressures.
Research firm TechInsights estimates that memory and storage components used in the upcoming iPhone 18 Pro could cost Apple approximately $196 per device, compared with about $52 for similar components in the iPhone 17 Pro.
The sharp increase reflects rising costs throughout the semiconductor supply chain as manufacturers prioritize production for high-demand AI applications.
Morgan Stanley estimates that if companies fully passed higher memory costs on to consumers, average selling prices could rise by around 34% for smartphones, 67% for personal computers, 83% for servers, and 14% for storage products.
Analysts noted, however, that these figures represent cost pressures rather than direct forecasts of future retail prices.
Industry-Wide Inflation Concerns
Cook's warning has sparked concerns that rising chip costs could trigger broader inflation across the technology sector.
Technology manufacturers have largely absorbed higher component costs over the past year to remain competitive, but sustained increases may force more companies to reconsider pricing strategies.
The situation has been further complicated by strong demand for AI infrastructure, which has transformed the memory-chip market and reduced the bargaining power of major electronics manufacturers.
According to The Wall Street Journal, Apple now faces increased competition for semiconductor supplies from some of the world's largest AI developers and cloud-computing companies.
Leadership Change Approaches
The comments come as Apple prepares for a major leadership transition.
Cook is expected to step down in September after serving as Apple's chief executive for 15 years. He will be succeeded by John Ternus, who is set to take over leadership of the company during a period of significant technological and market change.
The transition coincides with Apple's preparations for its next major product launch, where the company is widely expected to unveil the iPhone 18 lineup.
Market Awaits Apple's Next Move
Although Apple has not confirmed when price increases might take effect, Cook's remarks offer one of the strongest indications yet that the AI-driven semiconductor boom is beginning to affect consumer electronics pricing.
With memory-chip demand expected to remain elevated and AI investments continuing to accelerate worldwide, industry observers say Apple may not be the only technology company facing difficult pricing decisions in the months ahead.
The company's annual September product launch is now expected to draw heightened attention from both consumers and investors looking for signs of how Apple plans to navigate rising costs while maintaining demand for its products.
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