Wall Street is watching closely for Apple to raise prices because of a sharp jump in memory chip costs. In an interview with The Wall Street Journal, Apple CEO Tim Cook, who is expected to end his 15-year tenure soon and hand over to John Ternus, said higher prices have become unavoidable because of instability in the chip market. He did not say which products would get more expensive or when, but the reports leave open the possibility that the new policy could start with the iPhone 18 launch in September. Apple is also rumored to unveil its first foldable device at the same event.
Cook said Apple is trying to soften the impact on customers, but the situation has become unsustainable. He said supply is tight at a time when demand is at its peak, and memory suppliers are passing on steep price increases. Global reports say RAM prices have doubled since October 2025. The war with Iran also disrupted the global helium supply chain, raising chip production costs further. Analysts say AI is the main driver of the price surge, with Nvidia’s demand for memory and storage creating a bottleneck that could affect everything from smartphones and PCs to game consoles and televisions.
US President Donald Trump said Apple agreed to work with Intel to make its components in the United States, writing on Truth that he decided to help Intel because the country needs to design and build its chips in America. Microsoft’s Xbox chief, Asha Sharma, recently said her unit is in a hardware component crisis, noting memory costs had doubled since last fall and could rise to more than five times those levels by the 2027 holiday season. Industry groups representing automakers, retailers and electronics companies have also warned that surging memory demand could trigger major consumer price hikes and supply disruptions in the US.
Analysts say even Apple is not immune. IDC’s Francisco Jeronimo told CNBC that the world is being reshaped by AI and consumers are already paying the bill before enjoying the benefits. Gartner’s Ranjit Atwal said Apple’s planning strength does not make it invulnerable. Omdia expects the global average smartphone selling price to rise about 20% this year to a record high. Some in the market think Apple may raise prices mainly on premium models, by around $100, while keeping entry models unchanged. Others think the basic iPhone 18 could still rise by $200 or more, with TechInsights estimating the bill of materials for the base iPhone 18 Pro at $726, up 25%, and a possible retail price of at least $1,299. BofA Securities expects similar increases for most Mac and iPad models.
