Apple CEO Tim Cook confirmed that price increases across the company’s product lineup are imminent due to a global memory chip shortage, describing the situation as “unavoidable” in an exclusive interview with The Wall Street Journal. “Unfortunately, price increases are unavoidable,” Cook said, adding that Apple is doing its best to shield customers from these cost rises but that the situation is “unsustainable.”
Cook characterized the memory chip shortage as “a hundred-year flood,” indicating a severe crisis that he has not witnessed in over 40 years. The interview marks a clear signal that consumers will soon face higher prices for iPhones, iPads, and Macs.
The shortage originates from increased demand for DRAM and NAND memory chips, particularly from AI data centers, which are straining supplies from manufacturers such as Micron Technology, Samsung Electronics, and SK Hynix. Morgan Stanley analyst Joseph Kim reported that memory prices have surged more than sixfold over the past year. Cook stated that Apple is prepared to use its cash reserves to help mitigate supply issues, emphasizing the company’s willingness to contribute to a solution.
Nvidia chips, which power AI infrastructure, are consuming a significant portion of the available memory capacity, further complicating the supply landscape. Bloomberg’s Mark Gurman noted on X that Apple’s price hikes are “fairly imminent” and may align with its back-to-school promotion, potentially launching next week.
Regarding Apple price hikes, have to imagine these are fairly imminent. No other reason to flag them now. I’d also note that Apple back to school sale is very imminent, and it could make sense to tie these together as a buffer. Either way this is happening soon. Not a fall thing.
— Mark Gurman (@markgurman) June 18, 2026
Research firm TechInsights estimates that the price of the iPhone 17 Pro could increase to approximately $1,299 from its current price of $1,099. Meanwhile, the BBC reported that research firm Omdia projects an average global smartphone selling price increase of about 20% by 2026, with new Apple devices possibly costing up to $150 more than the iPhone 17 series.
Intel CEO Lip-Bu Tan has forecasted that there could be “no relief until 2028” for the chip shortage, while Synopsys CEO Sassine Ghazi suggested that the supply crunch may extend into 2027.
