Apple signals price rises as AI boom pushes up chip costs
Apple has said it plans to raise prices on some of its products as the cost of memory chips has surged, in a development that could affect one of the world's biggest consumer technology companies. Tim Cook, Apple's outgoing chief executive, said price increases were unavoidable because the situation around memory chips had become unsustainable. He did not say when any rises would take effect or which products would be affected.
Sponsored
Cook said Apple had been trying to shield customers from higher costs, but that the pressure from suppliers had become too great to absorb. He said there was less supply at a time when consumers still wanted devices, while chipmakers were passing on steep increases. The company did not confirm whether the iPhone 18, expected in September, would be affected.
The announcement comes as artificial intelligence demand continues to drive up prices for memory chips, which are essential components in smartphones and other devices. The price of RAM has more than doubled since October 2025, according to the supplied material, adding to costs across the sector. The same row also says the average selling price of smartphones globally is expected to rise by around 20% in 2026, which would mark an all-time high.
The issue matters because Apple's pricing decisions can influence the wider consumer electronics market, especially when component shortages affect multiple manufacturers at once. The supplied material also links the pressure to broader semiconductor supply constraints, including disruption to the global supply of helium caused by the war in Iran. Helium is used in semiconductor manufacturing, and any tightening in supply can add to production costs.
Sponsored
The row also says US President Donald Trump said Apple had agreed to work with Intel to make chips in the United States. Trump said he had decided to help Intel because the country needed to design and build chips domestically. Intel shares rose more than 10% when US stock markets opened on Thursday after the comments, underlining how closely investors are watching any shift in Apple's supply chain.
Apple said Cook is due to be replaced by John Ternus as chief executive in September after 15 years in the role. The supplied material also notes that the Trump administration announced last year that the federal government would take a 10% stake in Intel, adding another layer of political interest to the company's role in US chip manufacturing. What remains unclear is which Apple products, if any, will see higher prices and whether the reported Intel arrangement will lead to a concrete manufacturing change.
Sponsored
