Outgoing Apple CEO Tim Cook has confirmed that product price increases are now unavoidable. Soaring memory chip costs driven by the artificial intelligence boom have become impossible to absorb.
Cook stated in a Wall Street Journal interview that shielding consumers is no longer sustainable. Demand for memory components essential to both AI infrastructure and consumer electronics has caused prices to rise more than sixfold over the past year according to Morgan Stanley estimates.
The AI boom has fundamentally transformed the supply chain. Apple now competes directly with major data center operators for limited inventory, significantly reducing its negotiating leverage with chipmakers.
TechInsights estimates memory and storage costs for the upcoming iPhone 18 Pro could reach $196 per unit. This represents a sharp increase from roughly $52 in the previous generation, reflecting surging DRAM and NAND flash prices.
While specific pricing adjustments remain undisclosed, potential hikes could impact iPhones, Macs, and iPads. This development marks a significant economic shift as John Ternus prepares to succeed Cook this September.