Apple has warned that it may raise the prices of its products as surging memory chip costs driven by artificial intelligence demand put significant pressure on its supply chain.
The warning came from Apple’s chief executive, Tim Cook, who said price increases were “unavoidable” as conditions in the global memory chip market have become “unsustainable,” according to the Wall Street Journal.
Cook did not specify when the price changes would take effect or which products would be affected, though uncertainty remains over whether the upcoming iPhone 18, expected in September, will be impacted.
Memory chips are a critical component in smartphones and other smart devices, but prices have climbed sharply in recent months due to increased demand from the artificial intelligence industry.
“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 added that stabilising memory pricing and supply would be essential for consumer electronics markets to remain balanced.
The global semiconductor supply chain has also come under additional strain due to disruptions in helium supply, a key material used in chip manufacturing, linked in part to geopolitical tensions.
Industry analysts say the pressure is already feeding through to consumers. Research firm Omdia projects that the average global smartphone price could rise by around 20 per cent in 2026, reaching an all-time high.
According to smartphone analyst Chiew Le Xuan, Apple’s next-generation devices could see price increases of up to $150 compared to the iPhone 17 lineup, partly due to upgraded specifications required for new artificial intelligence features.
He noted that most smartphone manufacturers have already begun adjusting prices, reducing promotional discounts or lowering specifications to protect profit margins.
“This is the new pricing reality, not a temporary spike,” he said.
Other major technology companies have also signalled concerns about chip supply constraints. Taiwan Semiconductor Manufacturing Company (TSMC), which produces advanced chips for Apple, Nvidia and AMD, remains central to the strained global supply chain.
Samsung has also warned that memory chip shortages could increase the cost of electronic devices, while Nintendo recently announced price adjustments for its upcoming Switch 2 console due to changing market conditions.
Despite rising costs, Apple continues to record strong performance, with device sales increasing by 17 per cent in the first quarter of 2026, driven partly by demand in China for its latest products.
Earlier this year, Apple also raised prices on its Mac Mini line by removing its entry-level option, increasing starting costs by about $200.
As AI-driven demand reshapes the semiconductor industry, analysts say higher consumer electronics prices may become the norm rather than an exception.
