Apple will raise prices due to memory chip shortage, Tim Cook confirms
Apple is raising prices on its devices, and CEO Tim Cook has said publicly that the increases are unavoidable. Speaking to the Wall Street Journal, Cook cited a severe global shortage of memory chips as the driving force — one that has left Apple with little room to absorb costs any further.
"Unfortunately, price increases are unavoidable," Cook told the WSJ. "We've been doing everything we can to mitigate the enormous increases in component costs, and we've tried to protect our customers from this price growth, but the situation has become untenable."
Cook did not name specific products or give exact figures. The most immediate impact is expected on the iPhone 18 lineup, which Apple is set to unveil in September 2026.
The memory crunch
The root cause is a structural shift in the chip industry. Samsung, SK Hynix, and Micron — three companies that together control around 95% of global DRAM production — have redirected their most advanced memory to AI data centers, where margins are far higher. That leaves consumer devices competing for a shrinking supply of standard chips.
Global smartphone memory costs surged roughly 90–95% in the first quarter of 2026 alone, per IDC data. The average selling price of a smartphone worldwide has already risen 14% year-on-year to a record $523. The shortage is not expected to ease before 2027, according to multiple industry analysts.
What it means for buyers
Apple has more insulation than most. Its scale and supply chain integration mean it can absorb some costs that would bankrupt a smaller rival. Budget Android brands — Xiaomi, Transsion, Honor — are facing a far steeper squeeze, with global shipment declines of 20–32% projected for 2026 across those brands, according to IDC.
For iPhone buyers in the US and UK, the more immediate question is how much more the next upgrade will cost. The iPhone 18 Pro is expected to start around £1,099–£1,199 in the UK, though that baseline is likely to move upward. The biggest unknown is the iPhone Fold — Apple's first foldable — announced alongside the iPhone 18 Pro for September, with shipping expected to slip to late 2026 or early 2027. UK pricing forecasts put it between £1,720 and £2,200 at launch.
Cook, who hands over the CEO role on 1 September, stopped short of giving specific numbers. His successor will inherit both the pricing decision and the supply crisis that forced it.
