Apple May Raise Product Prices As Chip Supplies Tighten Globally

iPhone maker Apple is preparing for potential price increases across its product lineup as rising memory and storage chip costs put pressure on global supply chains, said CEO Tim Cook in an interview with the Wall Street Journal.

The company is facing growing cost challenges driven by a surge in artificial intelligence related demand, which has intensified competition for key components used in smartphones, laptops and data centres. This spike in demand has reduced available supply and pushed prices higher across the industry.

Industry groups representing automakers, retailers and electronics companies have also warned that rising memory chip demand could trigger broader price hikes in consumer goods while creating strain on global supply chains.

Chip Cost Pressure

According to Cook, the situation has become increasingly difficult for manufacturers as supplies tighten and prices continue to rise. “Unfortunately, price increases are unavoidable,” he said, adding that Apple has been trying to absorb some of the impact to protect customers.

The pressure is particularly visible in the memory market, where a growing share of supply is being directed towards AI-related infrastructure. Increased demand from data centres has reduced the availability of certain components used in consumer devices, contributing to higher prices across the sector.

At the same time, Apple is expected to introduce new products later this year. Reports suggest the company could unveil its first foldable iPhone alongside the iPhone 18 Pro and iPhone 18 Pro Max in September.

Although the company has not indicated whether any future price changes would affect those devices.

Supply Chain Strategy

Alongside managing costs, Apple is looking at ways to improve long-term supply stability as competition for memory and storage chips intensifies.

Reports suggest the company believes additional manufacturing capacity will be needed to meet growing demand and ease pressure on supplies across the industry. Despite the challenges, Apple does not plan to build its own memory or storage manufacturing facilities and will continue working with existing suppliers.

The company is also navigating broader changes in the semiconductor market, where artificial intelligence applications are reshaping demand patterns and influencing investment decisions across the global technology supply chain.