Apple CEO Tim Cook confirmed product prices will go up as memory chip costs surge. He said the increases are “unavoidable” and “unsustainable,” leaving uncertainty ahead of the iPhone 18 launch in September.
The news comes as demand for chips continues to rise, driven by artificial intelligence, which drives costs higher. Soon, consumers will face more expensive devices as supply chain pressures continue.
Research firm Omdia expects smartphone prices to rise by as much as 20 percent in 2026. Apple’s new phones could cost up to $150 more than the iPhone 17 series. Other companies, including Samsung, Sony, Nintendo, and TSMC, have also warned of higher prices due to shortages and inflation.
Apple sales still grew 17 percent in early 2026, driven by strong demand in China. The company raised Mac Mini prices earlier this year after dropping the 256GB base model. Despite rising costs, Apple continues to show strong performance in key markets.
Tim Cook will step down in September after 15 years, with John Ternus set to replace him as CEO. At the same time, President Trump confirmed Apple will work with Intel to produce chips in the U.S., after Washington took a 10 percent stake in Intel last year.
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Apple’s price increase sets the stage for a tougher market. All eyes are now on the iPhone 18 launch to see how buyers respond to higher costs.
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