Apple's Tim Cook warns of price hikes as memory chip costs double

Apple's outgoing CEO Tim Cook told the Wall Street Journal that price increases on Apple products are "unavoidable" as memory chip costs have become "unsustainable." The price of RAM, typically a cheap component, has more than doubled since October 2025, driven by soaring AI demand and a disrupted global helium supply (critical for semiconductor manufacturing) due to the Iran war. Cook said Apple tried to shield customers but can no longer absorb the "huge increases" being passed on by memory suppliers. He did not specify which products or when prices will rise, but analysts expect the iPhone 18 (launching in September) to cost up to $150 more than the iPhone 17, as Apple upgrades specs for new AI features.

Other tech giants are feeling similar pressure. TSMC would not rule out price increases, Samsung warned of supply shortages, Sony raised PS5 prices by £90/$100, and Nintendo will increase Switch 2 prices from September. Omdia forecasts smartphone average selling prices will rise 20% in 2026 to an all-time high. Apple's device sales grew 17% in early 2026, driven by China demand, but the company already raised the Mac Mini entry price by ~$200. Cook, set to be replaced by John Ternus in September after 15 years, emphasized that memory pricing and supply must return to "reasonable levels" for consumer products.