Why Prices Are Rising
Demand for data centers driven by the development of artificial intelligence has sharply intensified competition for limited supplies of key components. Memory manufacturers are increasingly directing shipments toward high-speed chips for AI servers, which is hurting the consumer electronics market.
Cook paid special attention to the DRAM market—dynamic random-access memory—whose shortage directly affects the cost of Apple devices.
"Supplies are shrinking precisely at a time when consumers want to buy devices, and memory manufacturers are passing huge price increases on to us. It is important for us that costs and supplies return to a reasonable level for consumer electronics," emphasized the Apple CEO.
According to him, the company had tried to protect customers from price increases until now, but the situation has become unsustainable. Cook did not specify when exactly prices will rise or which products will be affected.
What Apple Plans
Tim Cook said the company is considering all possible options to address the supply problem, including cooperation with Chinese memory manufacturers—if regulators permit. Apple is ready to use its own financial resources to increase supply volumes, but it does not plan to build its own memory factories.
The price increase comes as Apple prepares for a major device lineup refresh. In September, the company will unveil its first foldable iPhone, as well as the iPhone 18 Pro and Pro Max models. Notably, in the same month, Tim Cook will hand over leadership of the company to John Ternus.