Apple may raise iPhone and other device prices due to rising memory chip costs
Apple CEO Tim Cook said the surge in memory and storage chip prices, driven by AI demand, could force price increases on upcoming products.
Apple executives warned that escalating costs for memory (DRAM) and storage (NAND) chips could lead to higher prices for future iPhone, iPad, Mac and other devices. In an interview with the Wall Street Journal, CEO Tim Cook described the situation as unsustainable and said price increases are unavoidable, noting that chip costs have risen fourfold since the previous year. > "The situation is unsustainable," Cook said. He did not specify which products will be affected or the timing of any price changes.
Analysts expect the next iPhone, slated for a September launch, to be among the first devices where higher prices might be announced. Research firm TechInsights estimated that Apple would need to add about $270 to the price of the upcoming iPhone Pro model to maintain its profit margin, which would raise the starting price from $1,099.
The pressure on Apple comes amid broader industry shortages of memory chips linked to increased AI workloads. The company is also addressing challenges in its AI strategy, including a $250 million settlement earlier this year related to a lawsuit over unfulfilled AI feature promises.
