Tim Cook Warns Apple Device Prices Will Rise As Memory Chip Shortage Deepens

Apple device price increases are now unavoidable as memory and storage chip costs surge, Tim Cook has warned. AI data centers are consuming more components, leaving less supply for smartphones and computers, as noted by the Baltimore Chronicle.

Why Apple Prices Are Expected To Rise

Cook described the disruption as a “hundred-year flood.” He said Apple had tried to absorb supplier increases, but the pressure had become unsustainable.

The company has not disclosed which devices will become more expensive. It also has not confirmed when the new pricing will begin.

Apple’s next major launch is expected to include the iPhone 18 range. TechInsights estimates that maintaining current margins could add about $270 to the production-linked price of the next Pro model. That could push its retail price towards $1,299.

AI Demand Is Reshaping The Chip Market

AI companies require high-bandwidth memory for powerful servers. Suppliers are therefore directing more manufacturing capacity towards data centers instead of consumer electronics.

The shortage affects several major product categories:

• iPhones and other smartphones
• Mac computers and Windows PCs
• iPads and competing tablets
• Gaming consoles and industrial equipment

Manufacturers may respond by raising prices, reducing specifications or postponing launches. Consumers could therefore face fewer choices alongside higher costs.

Current estimates show how rapidly the market is changing:

Morgan Stanley says memory prices have increased more than sixfold within a year. Large cloud companies can secure priority supplies through advance payments and long-term contracts.

Apple is willing to use its cash reserves to support additional production. Cook ruled out building Apple-owned memory factories, however, saying the company cannot manufacture every component itself.

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