Apple to Raise Prices Due to Memory Chip Costs

Apple plans to raise the prices of its products as the cost of the memory chips it uses has surged, the technology giant's boss has said. Tim Cook, Apple's outgoing chief executive, told the Wall Street Journal that price increases were unavoidable as the situation around memory chips had become unsustainable. The price of Ram has more than doubled since October 2025. In addition to rising AI demand, the war in Iran has also disrupted the global supply of helium, a gas crucial in making semiconductors, adding to the cost of computer chips. Apple's new phones are likely to cost up to $150 more than the iPhone 17s, as the firm is expected to upgrade their specifications to support new AI features.

## What happened Apple is raising its prices to offset the high cost of memory and storage, CEO Tim Cook told The Wall Street Journal. Apple is no longer able to absorb the increased prices and will need to pass some of the cost on to consumers. The boom in artificial intelligence has driven up the prices of memory chips in recent months. The average selling price of smartphones globally is expected to rise by around 20% in 2026 to an all-time high, according to research firm Omdia. ## Why it matters The price increases will affect Apple's customers, who will have to pay more for the company's products. The situation has become unsustainable for Apple, and the company has to pass on the increased costs to its customers. The price hikes will also affect the company's profit margins, as Apple will have to balance its prices with the increased costs. ## How to think about it The price increases are a result of the surge in memory chip costs, which is driven by the boom in artificial intelligence. Apple's customers should expect to pay more for the company's products, and the company will have to balance its prices with the increased costs. ## FAQ