Tim Cook says Apple has no choice but to raise prices as rising chip costs put pressure on production.
Apple CEO Tim Cook has confirmed that the tech giant will raise prices on some products. The move comes as memory and storage chip costs continue to climb worldwide. Speaking to The Wall Street Journal, Cook said, “Unfortunately, price increases are unavoidable.” He added, “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.”
Reports say the shortage is being driven by massive demand from artificial intelligence companies building data centres worldwide.
As AI firms race to secure more chips, consumer electronics makers are feeling the pressure. Industry reports show that prices for memory and storage components have jumped sharply in recent months.
Because of that, Apple now faces much higher production costs for iPhones, iPads and Macs. Although Cook did not reveal which products will be affected, analysts believe upcoming devices could cost significantly more. Some reports even suggest premium iPhone models may see notable price increases later this year.
Meanwhile, Apple says it has explored several options before deciding on price adjustments. The company has reportedly stockpiled components and absorbed rising costs for months. However, Cook believes the current supply crisis is unlike anything he has seen before.
Describing the situation, he said it is a “hundred-year flood.” He also noted, “There’s less supply at a time when consumers want devices and the memory guys are passing along huge price increases.” Even with Apple’s enormous cash reserves, the company says it cannot fully escape the market reality.
Still, Apple has ruled out building its own memory factories. Cook explained, “We can’t do everything.” He added, “We know what we’re good at.” For now, the company plans to use its financial strength to secure better supply deals where possible. Yet consumers should prepare for higher prices in the months ahead.
With AI demand showing no signs of slowing, the memory chip crunch could continue well into the future, keeping pressure on both Apple and its customers.
