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Apple may raise prices on its future devices, including iPhones, as part of a major strategic business shift. The rising costs of memory and storage chips continue to squeeze margins, and it might be a major factor behind the decision. CEO Tim Cook has revealed that the tech giant has always tried to shield customers from rising component costs until now. However, maintaining that approach is becoming increasingly difficult.
In an interview with the Wall Street Journal, Apple CEO Tim Cook said, “Apple has tried to protect customers from higher costs for as long as possible. However, now it's facing major increases in the prices of memory and storage chips.”
Apple's most recent cost pressures stem from the fast growth of AI infrastructure. High-tech corporations are spending a fortune on artificial intelligence data centers. This has created an unprecedented increase in demand for memory chips such as DRAM and NAND flash storage. Competition among consumer electronics vendors, combined with limited chip supply and the prioritization of AI equipment manufacturers, has driven up memory costs.
According to Cook, the situation is extraordinary. He further explained, “Unfortunately, price increases are unavoidable. 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.”
According to The Wall Street Journal, rising memory costs alone are expected to add hundreds of dollars to the manufacturing cost of the next premium iPhone. Some projections suggest the next iPhone Pro could cost as much as $1,299.
Apple previously informed investors about the growing effect memory costs would have on its operations through 2026. The company reported that it expected considerably higher memory costs for the upcoming quarters.
The message to customers considering upgrading their phones later this year is that rising chip prices are becoming difficult to ignore. Even though Apple has not officially confirmed an increase in iPhone costs yet, Tim Cook's recent comments point in that direction.
Also read: Apple's Next Major Hardware Move: iOS 27 Code Suggests Foldable Phone Support
