Memory Chip Shortage: Apple to Raise Product Prices

According to industry reports, Apple CEO Tim Cook has indicated that the company is preparing to raise product prices in response to rising costs of memory and storage chips.

The surge in demand for artificial intelligence–driven data center infrastructure has significantly tightened global supply of key semiconductor components. As a result, competition for memory chips has intensified across the electronics ecosystem, driving notable price increases, particularly in DRAM and related storage solutions.

Cook noted that memory and storage pricing pressures have become a major concern for Apple, especially within the DRAM segment. He emphasized that an increasing share of global supply is being redirected toward high-bandwidth memory (HBM) used in AI servers, leaving less capacity available for consumer electronics. “When consumers need devices, memory supply is shrinking, while manufacturers are passing on substantial price increases,” he said, adding that restoring balanced pricing and stable supply for consumer-grade memory is now critical.

Industry groups representing automakers, retailers, and electronics firms had previously warned that sustained growth in memory chip demand could lead to broader price increases in consumer goods and further strain global supply chains.

Cook stated that although price adjustments are becoming unavoidable, Apple is actively working to mitigate the impact on customers. However, he acknowledged that absorbing the full cost increase is no longer sustainable. He did not disclose when price changes would take effect, the scale of increases, or which product lines would be affected.

He also suggested that Apple is considering using its strong cash position to secure additional memory supply, although no specific arrangements were confirmed. At the same time, Cook clarified that the company has no plans to enter memory or storage chip manufacturing or build its own fabrication facilities.

Separately, reports indicate that Apple is preparing for a major product cycle in September, which may include its first foldable iPhone alongside the iPhone 18 Pro and iPhone 18 Pro Max, further increasing demand for advanced memory and storage components.