Apple Warns of Inevitable Price Increases for Its Devices Amid the AI Boom

In an interview with The Wall Street Journal, Cook acknowledged that price increases have effectively become unavoidable. According to him, Apple has spent a long time shielding customers from rising component costs, but the current market situation is making that increasingly difficult.

“We are doing everything we can to mitigate the massive price increases being passed on to us, and we have tried to protect our customers from those increases, but the situation has become unsustainable,” the Apple CEO said.

The main driver behind the problem is the rapid expansion of the artificial intelligence industry. Companies around the world are building new data centers and expanding AI infrastructure, causing demand for memory chips to surge. Manufacturers are struggling to keep up, and the resulting shortages are pushing prices higher.

Earlier this month, industry groups representing the automotive, retail, and electronics sectors warned that growing memory shortages could lead not only to higher prices for consumer products but also to new disruptions across global supply chains.

Apple is feeling the pressure particularly strongly in the DRAM and NAND Flash markets. DRAM is used to run applications and operating systems, while NAND Flash stores photos, videos, and other data. Both technologies are essential components in smartphones, tablets, laptops, servers, vehicles, and even medical equipment.

Cook noted that an increasing share of memory production is being redirected toward high-bandwidth memory modules used in AI servers. As a result, fewer components are available for consumer electronics manufacturers.

“At a time when consumers want devices and memory manufacturers are passing through enormous price increases, supply is shrinking. We absolutely need memory pricing and supply to return to reasonable levels for consumer products,” he said.

The Apple chief did not specify when prices might rise or which products would be affected the most. However, his comments come just months before the company’s major fall product launch event.

Apple is expected to unveil its first foldable iPhone alongside the new iPhone 18 Pro and iPhone 18 Pro Max models in September. According to Morgan Stanley, memory market pressures could drive overall smartphone and computer prices up by around 15%.

The company is also facing additional pressure from its own artificial intelligence ambitions. Apple is preparing a major Siri upgrade that will require more DRAM and new AI-powered capabilities.

Despite the challenges, Cook suggested that Apple is willing to invest its own resources to help expand memory production capacity. He said the company could leverage its substantial cash reserves to support efforts aimed at increasing supply.

“We are prepared to use our balance sheet to be part of the solution. More capacity is clearly needed,” Cook concluded.