In brief
Apple has announced that memory chip price inflation, spurred by growing AI demand and supply disruptions, will necessitate higher prices for its devices. Cook stated the situation has become unsustainable, citing limited supply and escalating costs. The company has not yet disclosed exact timing or affected models, but experts predict the iPhone 18 and new iPhones could see up to $150 higher prices. Analysts forecast a 20% rise in global smartphone average selling prices by 2026. Other tech brands such as Samsung, Sony, and Nintendo are also adjusting pricing strategies amid similar pressures.
Apple has announced that memory chip price inflation will force higher prices across its product lineup this year, citing the unsustainable costs tied to the booming artificial‑intelligence market.
Apple CEO Tim Cook told the Wall Street Journal that price increases are “unavoidable” as memory chip prices have surged with demand for AI‑enabled devices. The company has not yet disclosed when the hikes will take effect or which products will be affected, but it is expected that the upcoming iPhone 18 and new iPhone models could carry higher price tags.
Memory components, notably RAM, have more than doubled in price since October 2025, and supply shortages—exacerbated by a war in Iran that has disrupted helium supply for semiconductor production—have pushed costs higher.
Expert analysis by Omdia predicts that the average selling price of smartphones globally will rise by about 20% in 2026, reaching an all‑time high. Apple is expected to upgrade its new phones for AI features, potentially adding up to $150 to the price of the iPhone 20s compared to iPhone 17s.
In parallel, other major tech brands are adopting similar tactics: Samsung forecasts higher device costs due to memory shortages; Sony has raised PlayStation 5 prices, and Nintendo will increase the price of Switch 2 from September. The trend reflects a new pricing reality driven by continuous pressure from the chip manufacturing industry.
