Apple to Raise Device Prices as AI Demand Quadruples Memory Chip Costs, Tim Cook Tells WSJ

Apple plans to increase prices on its products to offset surging costs for memory (DRAM) and storage (NAND) chips, driven by explosive demand from AI data centers. In an interview with The Wall Street Journal, CEO Tim Cook stated, “Unfortunately, price increases are unavoidable. We’re doing our best to mitigate the huge increases that are being passed to us, and we’ve been trying to shield our customers from the increases, but the situation has become unsustainable.”

The surge stems from AI hyperscalers like Google, Microsoft, Meta, and Amazon reallocating production toward high-bandwidth memory (HBM) for servers, shrinking supply for standard DRAM and NAND used in consumer devices. Prices for these chips have quadrupled since last year and are projected to keep rising into 2027, according to TechInsights. This directly impacts Apple's margins; estimates suggest maintaining current profitability on an iPhone 18 Pro could require a starting price around $1,299–$1,399, up from current levels.

Apple has already begun adjusting, raising the Mac Mini's starting price recently. The move highlights a broader industry pressure: consumer electronics manufacturers face an “AI tax” as data center demand crowds out supply for smartphones, laptops, and other gadgets. While Apple aims to absorb some costs, the shift underscores how AI infrastructure buildout is rippling into everyday tech affordability.