In brief
Apple’s outgoing CEO Tim Cook announced that rising costs for memory chips – driven by a boom in artificial intelligence and a supply shock caused by the Iran‑linked helium shortage – will compel the company to increase prices for its flagship products. Cook said the situation is "unsustainable" and that the hikes are inevitable, though he did not specify when they will take effect or which models will be affected. Analysts predict iPhone 18, expected next September, could see prices climb by up to $150 with upgraded AI features, matching a broader trend among smartphone makers who are either passing costs or trimming specs to protect margins. The move underscores a new pricing reality for consumer electronics in a climate of high supply cost inflation.
Apple is set to increase the prices of its flagship products, citing surging costs for the memory chips that power devices. The decision follows a sharp rise in chip prices driven by an AI boom and a global helium shortage caused by conflict in Iran.
Tim Cook, the company’s outgoing chief executive who will be replaced by John Ternus in September, told the Wall Street Journal that the situation has become "unsustainable". He explained that while Apple has tried to shield customers from price rises, the steep increases in memory components have forced the firm to act.
The price impact is expected to hit the upcoming iPhone 18, slated for launch in September, which may command up to $150 more than the current iPhone 17‑series. Omdia analysts predict a 20% rise in global smartphone average selling prices in 2026, with updated AI features and higher specifications pushing costs higher.
Even more expensive, Apple’s Mac Mini has been withdrawn at the entry‑level, raising its starting price by about $200. Other tech giants—Samsung, Sony, and Nintendo—have already increased their console prices or trimmed features to offset the same supply‑cost pressures.
The move signals a new pricing reality in an industry where memory chip costs are more volatile than ever, proving that even the world’s largest manufacturers are vulnerable to global supply chain shocks and market demand cycles. Stay tuned for the upcoming Apple press conference where executives will detail future product prices and strategies.
