Apple CEO Tim Cook signals price hike for iPhones and other products due to ongoing memory shortage
The inevitable has happened. Till date, Apple was one of the rare OEMs which hadn’t raised prices of its smartphones post launch during the ongoing memory shortage crisis. But, just a day after reports surfaced that even the next-gen iPhone 18 may not come with a higher price tag despite increased RAM, Apple CEO Tim Cook has claimed otherwise. In an interview with The Wall Street Journal, Cook said the company can no longer fully absorb the sharp increases being passed on by suppliers, signalling that higher prices for iPhones may be on the cards.
iPhone 18 lineup prices may rise
“Price increases are unavoidable,” Cook told the WSJ, adding that Apple has tried to shield customers from rising costs for as long as possible.
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“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… We definitely need memory pricing and supply to return to reasonable levels for consumer products. That’s the bottom line.”
– Tim Cook
The comments are notable because Apple has largely resisted the steady price inflation seen across the smartphone industry in recent years. While brands such as Xiaomi, OnePlus, OPPO and others have frequently increased prices generation after generation, Apple has kept flagship starting prices unchanged. That strategy has helped Apple maintain a perception of pricing stability even as storage upgrades and premium models became more expensive. Cook’s remarks now suggest that approach may be becoming harder to sustain.
The timing is significant as Apple is expected to unveil the foldable iPhone, alongside the iPhone 18 Pro and iPhone 18 Pro Max later this year. Foldable devices already carry higher component costs than traditional smartphones, and any broader supply pressures could further influence pricing decisions.
Cook said Apple is willing to use its financial resources to help improve supply availability, though he ruled out building the company’s own memory manufacturing facilities. He also suggested that expanding sourcing options should be considered, including evaluating supply chains that are currently restricted by geopolitical and regulatory factors.
Why are smartphone prices rising?
The reason for the unprecedented price hike is the global AI boom. Demand for AI servers and data centres has surged over the past year, increasing competition for memory components such as DRAM and high-bandwidth memory (HBM). As chipmakers prioritise supplies for lucrative AI infrastructure projects, consumer electronics brands are finding themselves competing for a smaller pool of components.
However, concerns extend beyond Apple and even smartphones. Earlier this month, industry groups representing automakers, retailers and electronics manufacturers warned that memory shortages could drive up prices across a wide range of consumer products and create fresh supply chain disruptions.
For buyers, there is no immediate reason to rush into a purchase since Apple has not announced specific price increases or timelines. However, consumers planning to upgrade to upcoming iPhones, iPads or Macs may want to keep a closer eye on launch pricing this year. Nothing co-founder Carl Pei has suggested that the surge does not seem to be slowing down anytime soon.
