Apple plans to raise prices on its products to offset increasing memory and storage chip costs, chief executive Tim Cook has told the Wall Street Journal.
A surge in AI-driven demand for data centres has forced consumer electronics companies into fierce competition for dwindling supplies of key components, driving prices sharply higher.
Groups representing car makers, retailers, electronics manufacturers and others had warned earlier this month that the increasing demand for memory chips could disrupt supply chains and lead to dramatic price rises in US consumer goods.
“Unfortunately, price increases are unavoidable,” Mr 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.”
Mr Cook, who will step down in September and be succeeded by John Ternus, did not disclose when or how much prices might rise, nor which products could be affected.
Apple is reportedly on track to release its first foldable iPhone in September, alongside the iPhone 18 Pro and Pro Max.
Memory and storage costs are both concerns for the company, with particular emphasis on the DRAM market, Mr Cook said.
He said more supply is being allocated to high-bandwidth memory, which is used in AI servers.
“There's less supply at a time when consumers want devices and the memory guys are passing along huge price increases,” Mr Cook said. “We definitely need memory pricing and supply to return to reasonable levels for consumer products. That's the bottom line.”
He indicated that Apple is prepared to use its cash reserves to boost memory supply, but did not go into detail.
“We're willing to use our balance sheet to help be a part of the solution,” Mr Cook said. “Obviously, more capacity is needed.”
