Apple is set to raise its prices as a response to the soaring costs of memory and storage, according to CEO Tim Cook. The company finds itself unable to continue absorbing these increased costs and will need to pass some of the burden onto consumers. Cook emphasized that while Apple has attempted to shield customers from these hikes, the current situation is unsustainable.
Though Cook did not specify which products will see price hikes or the extent of these increases, it’s anticipated that the upcoming iPhone 18 Pro models, as well as iPads and Macs, could be affected. The price of the Mac mini has already seen an increase from $599 to $799, following the removal of its lowest-tier model.
The surge in demand for memory and storage chips, particularly from AI companies, has led to shortages and higher prices. To maintain its profit margins, Apple may need to significantly increase device costs. It’s estimated that the iPhone 18 Pro might need to be priced around $270 higher to preserve current margins.
Apple faces particular challenges with memory chips, although storage chips are also a concern. With limited supply and growing consumer demand, chip manufacturers are passing on substantial price increases. While Apple plans to use its financial resources to boost memory supply, no specific strategies were disclosed.
Despite being a major purchaser of memory and storage, Apple does not intend to establish its own manufacturing facilities, acknowledging its limitations. Meanwhile, memory chip producers like Samsung, SK Hynix, and Micron are expanding their production capacity, primarily focusing on server chips. The demand for consumer-device chips is predicted to continue outpacing supply, especially as Apple seeks to enhance AI features requiring more DRAM in its devices.
Other companies, including Samsung, Microsoft, Sony, and Dell, have also raised their prices in response to these challenges.
