Tim Cook says Apple will raise prices due to memory shortage
Apple will be forced to raise prices on some of its products as memory costs continue to climb, CEO Tim Cook has acknowledged.
In an interview with The Wall Street Journal, Cook said Apple is no longer insulated from the global memory shortage despite its long-standing ability to secure favorable supplier agreements and negotiate long-term contracts.
"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," Cook said.
He declined to specify which products would be affected or when the price increases might take effect.
According to Cook, memory suppliers are allocating a growing share of production to higher-margin enterprise customers, leaving less capacity available for consumer electronics. As a result, prices continue to rise, and there is currently no clear timeline for when they might return to more "reasonable levels".
Apple's next major product launch is expected in September, when the company is widely anticipated to unveil the iPhone 18 lineup alongside its first foldable iPhone.
Macs and iPads could see price increases before iPhones. Signs of higher pricing have already emerged: last month Apple effectively raised the entry price of the Mac mini by discontinuing the lowest-memory configuration and leaving only more expensive versions on sale.
The memory shortage has affected the broader consumer electronics industry in recent months, impacting everything from smartphones and gaming consoles to cameras. Demand for memory chips has surged alongside the rapid expansion of the AI industry, prompting manufacturers to prioritize more profitable enterprise orders over consumer products.
The situation comes during a leadership transition at Apple. On September 1, Tim Cook is expected to become chairman of the board, while current hardware chief John Ternus will take over as CEO. Future pricing decisions will ultimately fall under his leadership.