Apple Price Hikes Could Arrive Within Days as Memory Chip Shortage Bites, Gurman Says

Cook Calls It a 'Hundred-Year Flood'

Apple CEO Tim Cook has confirmed that price increases across the company's product lineup are coming, telling The Wall Street Journal that the global memory chip shortage has made higher prices "unavoidable." In an exclusive interview published Wednesday, Cook said: "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 described the crisis as "a hundred-year flood," adding, "I've never seen anything like it in any area in over 40 years." The remarks mark the clearest signal yet that consumers will soon pay more for iPhones, iPads, and Macs.

AI Demand Squeezes Consumer Electronics

The shortage stems from surging demand for DRAM and NAND memory chips from AI data centres, which are consuming supplies from manufacturers like Micron Technology, Samsung Electronics, and SK Hynix. Memory prices have risen more than sixfold over the past year, according to Morgan Stanley analyst Joseph Kim. Nvidia chips powering AI infrastructure are absorbing much of the available memory capacity that a limited number of manufacturers can provide.

Cook signalled Apple is prepared to step in, stating, "We are willing to utilise our financial resources to contribute to the solution" by deploying its cash reserves to help boost supply.

Hikes Could Land Within Days

Bloomberg's Mark Gurman wrote on X that Apple's price hikes are "fairly imminent," adding there is "no other reason to flag them now." Gurman said the increases are "not a fall thing" and may coincide with Apple's back-to-school promotion, which could launch as soon as next week.

Research firm TechInsights estimates the iPhone 18 Pro could rise to around $1,299, up from its current $1,099 price point. The BBC reported that research firm Omdia projects the average global selling price of smartphones will rise approximately 20% in 2026, with Apple's new devices potentially costing up to $150 more than the iPhone 17 series.

No Relief Until 2028

The pain looks set to last. Intel CEO Lip-Bu Tan recently predicted the industry could see "no relief until 2028," while Synopsys CEO Sassine Ghazi told CNBC the chip crunch is likely to extend into 2027. Nothing CEO Carl Pei has warned that memory chips now account for more than 50% of a smartphone's total hardware bill of materials, more expensive than the processor and display combined. With AI data centres showing no sign of slowing their appetite, the squeeze on everyday gadgets may be only just beginning.