Apple to raise prices as AI boom pushes up chip costsThe firm's outgoing boss Tim Cook did not say when prices will rise or which products will be affected.2 hrs agoBusiness

Apple plans to raise the prices of its products as the cost of the memory chips it uses has surged, the technology giant’s boss has said.

Tim Cook, Apple’s outgoing chief executive, told The Wall Street Journal (WSJ) that price increases are “unavoidable” as the situation around memory chips has become “unsustainable”.

He did not say when prices will rise or which products will be affected. It is also unclear whether the price hikes will affect the iPhone 18, which is expected to be launched in September.

Memory chips are essential components in smart devices like mobile phones, but the boom in artificial intelligence (AI) has driven up their prices in recent months.

“There’s less supply at a time when consumers want devices and the memory guys are passing along huge price increases,” said Cook, who is due to be replaced by John Ternus as Apple’s CEO in September after 15 years in the role.

“We definitely need memory pricing and supply to return to reasonable levels for consumer products. That’s the bottom line.”

Cook’s comments come after other technology giants have highlighted pressure in the chipmaking industry.

In an exclusive interview with the BBC this month, Taiwan Semiconductor Manufacturing Company (TSMC) would not rule out price increases as inflation pushed up its costs.

TSMC makes the most advanced chips designed by companies such as Apple, Nvidia and AMD.

Earlier this year, Samsung said that it expects memory chip supply shortages to raise the prices of electronic devices.

The price of Ram – typically one of the cheapest computer components – has more than doubled since October 2025.

In addition to rising AI demand, the war in Iran has also disrupted the global supply of helium, a gas crucial in making semiconductors, adding to the cost of computer chips.

The iPhone 17 has been popular since the lineup was launched last September. Sales of Apple devices grew by 17% in the first three months of 2026 compared to the same period a year ago, helped by strong demand in China.

The company raised the starting price of its Mac Mini compact computers by about $200 (£150) earlier this year.