- Apple warns rising component costs necessitate future price increases.
- AI demand and supply issues hike chip prices.
- Industry forecasts global smartphone price increases, including Apple products.
- Other tech giants also indicate or implement price hikes.
If you’re looking to buy future Apple devices, you may have to prepare for steeper prices, as the iPhone maker is now indicating that rising component costs are becoming increasingly difficult to absorb. Apple’s outgoing Chief Executive Officer Tim Cook has acknowledged that mounting expenses in the semiconductor industry are forcing the company to reconsider its pricing strategy.
The warning comes as the global technology sector grapples with a sharp rise in memory chip costs, driven largely by demand linked to artificial intelligence.
While Apple has not confirmed which products could become more expensive or when any increases might take effect, the comments have sparked speculation about the pricing of upcoming devices, including the next generation of iPhones expected later this year.
Apple Says It Can No Longer Absorb Rising Costs
In an interview with the Wall Street Journal, Cook said the company had spent months trying to shield buyers from higher manufacturing expenses but suggested that approach may no longer be sustainable.
“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.”
The Apple chief pointed to a growing mismatch between supply and demand in the memory chip market.
“There’s less supply at a time when consumers want devices and the memory guys are passing along huge price increases,” Cook said.
Cook, who is scheduled to step down in September after leading Apple for 15 years, said the industry urgently needs a return to more stable conditions.
“We definitely need memory pricing and supply to return to reasonable levels for consumer products. That’s the bottom line.”
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AI Expansion Reshaping The Semiconductor Market
The rapid deployment of AI systems across industries has dramatically increased demand for advanced memory components used in data centres, servers and consumer electronics. That surge has had a knock-on effect across the broader technology ecosystem.
Market data indicates that RAM prices have risen more than 100 per cent since October 2025, transforming what was once among the cheapest components in a computer into a significantly more expensive part.
Analysts say the AI race has intensified competition for chip supplies at a time when production remains constrained.
The industry is also facing fresh supply-chain challenges. The conflict involving Iran has disrupted helium supplies, an important resource used during semiconductor manufacturing. The shortage has added further pressure to production costs throughout the chip sector.
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Smartphones Across The Industry Expected To Become Costlier
Research firm Omdia believes the impact of rising component costs will be felt across the smartphone market rather than by Apple alone.
The firm forecasts that average smartphone selling prices worldwide could climb by around 20 per cent in 2026, reaching their highest level on record.
Chiew Le Xuan, a smartphone market analyst at Omdia, told the BBC that Apple’s upcoming handsets could be priced as much as $150 above current iPhone 17 models. According to the analyst, additional hardware upgrades needed to support AI-focused features are likely to contribute to the increase.
The analyst also noted that manufacturers have already started adjusting their strategies, with some raising prices, others reducing discounts and promotions, and some trimming device specifications to offset higher production expenses.
“This is the new pricing reality, not a temporary spike.”
Industry Giants Issue Similar Warnings
Concerns over semiconductor costs are being echoed across the technology industry.
Taiwan Semiconductor Manufacturing Company (TSMC), which produces advanced chips for companies including Apple, Nvidia and AMD, recently indicated that future price increases remain a possibility as inflation continues to affect operating costs, reported BBC.
Samsung has also warned that memory shortages could translate into more expensive consumer electronics.
Gaming companies have already begun passing on higher costs to customers. Sony raised PlayStation 5 prices in key markets earlier this year, citing “continued pressures in the global economic landscape”. Nintendo later announced that prices for its Switch 2 console would increase from September because of “changes in market conditions”.
Despite the challenges, Apple continues to benefit from strong consumer demand. The company reported a 17 per cent year-on-year increase in device sales during the first quarter of 2026, supported in part by robust performance in China. Earlier this year, Apple also removed the lowest-priced Mac Mini option from its lineup, effectively lifting the entry point for the product range by roughly $200.
Before You Go
Apple creates a new record in iPhone sales after launch of iPhone 16 | ABP Paisa Live
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