Cook says Apple will raise prices amid memory shortage

Tim Cook confirmed Wednesday that Apple ↗0.70% will raise device prices, calling memory chip cost increases “unprecedented” in a Wall Street Journal interview.9to5mac
The global “RAMageddon” shortage, fueled by AI infrastructure demand, has driven memory prices up sharply, with Samsung and SK Hynix seeking major DRAM price hikes.businessinsider
Cook did not specify timing or affected products, leaving incoming CEO John Ternus, who takes over Sept. 1, to implement the increases.apple

Apple CEO Tim Cook Confirms Price Increases Are Coming Due to Memory Chip Shortage

Apple CEO Tim Cook confirmed in an interview with The Wall Street Journal published Wednesday that the company will raise prices on its devices, citing an “unprecedented” surge in memory chip costs driven by global AI demand.

“There’s less supply at a time when consumers want devices and the memory guys are passing along huge price increases,” Cook told the Journal. “We definitely need memory pricing and supply to return to reasonable levels for consumer products. That’s the bottom line.”9to5mac

A Slow-Building Crisis

The confirmation marks a shift for Apple, which until now had absorbed rising memory costs rather than pass them along to consumers. Cook had spent months signaling the pressure was mounting. During Apple’s fiscal second-quarter earnings call in late April, he warned of “significantly higher memory costs” in the June quarter and beyond. At the time, he said Apple would “explore a variety of options” — language that stopped short of confirming price hikes.techradar

The memory shortage, dubbed “RAMageddon” across the tech industry, stems from AI companies consuming enormous quantities of memory chips for data centers, leaving less supply for consumer devices. Memory prices rose 50% in the final quarter of 2025 and were projected to climb another 40% to 50% early this year, according to the Journal. Samsung Electronics and SK Hynix sought DRAM price increases of 60% to 70% in the first quarter.yahoo

What Comes Next

Cook did not specify which products would see increases or when, but the timing places incoming CEO John Ternus — set to take the helm on September 1 — squarely in the position of implementing the changes. Some analysts expect Mac and iPad adjustments before the fall product cycle.apple

For the iPhone 18 Pro, expected in September, analyst Ming-Chi Kuo has suggested Apple may keep prices unchanged, though component costs are rising sharply — including a 50% increase in camera module costs. Speculation sites have pegged the 512GB iPhone 18 Pro Max at $1,299, though Apple has not confirmed pricing.smartprix

The announcement comes as Apple attempts to balance its premium positioning against the risk of consumer pushback. Last September, the company raised the iPhone 17 Pro’s price by $100 while holding its base models steady. Whether Cook’s successor can maintain that selective approach amid sustained memory inflation remains an open question.cnbc