Apple chief says AI chip demand will push device prices higher
Tim Cook told The Wall Street Journal that rising memory costs tied to AI data centres have made Apple price increases unavoidable.
By Lucas Ferreira · Science & Environment Writer
3 min read
Apple customers face higher prices as the artificial intelligence build-out raises the cost of memory chips used in consumer electronics. Chief Executive Tim Cook told The Wall Street Journal that Apple can no longer absorb the increases driven by tight supply and stronger demand from AI infrastructure.
Cook, who is outgoing CEO of Apple, told the Journal on Wednesday that “price increases are unavoidable.” He said the company had been “trying to shield customers from the increases” but that the approach had become “unsustainable.”
Cook did not say when prices would rise or which Apple products would be affected, according to Al Jazeera, which cited reporting from The Wall Street Journal, AFP and Reuters. The effect on the expected September launch of the iPhone 18, including its pricing, remains unclear.
“There’s less supply at a time when consumers want devices and the memory guys are passing along huge price increases,” Cook told the Journal.
AI data centres strain component supply
The pressure comes from rapid growth in AI data centres, which use large amounts of memory and storage hardware. Al Jazeera reported that consumer electronics companies are now competing more aggressively for key components as supplies tighten.
Chip prices have risen by at least 50 percent each quarter since late 2025, according to the report. The Journal, citing research firm TechInsights, said Apple would need to lift the price of its iPhone Pro model by $270 to preserve its current profit margin.
Cook told the Journal that both memory and storage costs are concerns for Apple. He pointed in particular to the DRAM market, where AI infrastructure has increased pressure on available supply.
More memory production is being directed toward high-bandwidth memory, Cook said, a component widely used in AI servers. That shift leaves companies selling phones, computers and other consumer devices facing higher costs for the parts they need.
Cook calls the surge a rare supply shock
Cook has spent much of his career in technology supply chains, including roles at IBM and Compaq before he joined Apple, according to Al Jazeera. He told the Journal he had not seen a price increase of this kind before and described the situation as a “hundred-year flood.”
The comments put Apple’s pricing under scrutiny ahead of its next major iPhone cycle. The company has not detailed which devices would carry higher prices, and Cook’s remarks did not give a timetable for any changes.
China has major memory and storage companies, Al Jazeera reported, but United States firms would likely need specific licences to work with them under national security rules. Asked whether those restrictions should be eased, Cook told the Journal: “Everything needs to be on the table … I think we should look at all supplies.”
The remarks show how the AI boom is spilling into the consumer device market. As data-centre operators buy more advanced memory for AI servers, companies such as Apple face higher input costs that may soon show up in retail prices.
This story draws on original reporting from Al Jazeera.