Apple CEO warns price rises ‘unavoidable’ amid AI boom
Summary
Apple CEO Tim Cook said that Apple will have to raise the prices of its products because the demand for memory chips is very high due to growth in artificial intelligence (AI). He explained that costs for these chips have risen a lot, making it impossible for Apple to keep prices steady.Key Facts
- Apple needs to increase product prices due to high demand for memory chips from AI growth.
- Tim Cook called the price rises “unavoidable” but said Apple has tried to protect customers from them.
- Memory chip prices, especially for DRAM used in AI servers, have increased sharply—around 50% every quarter since late 2025.
- Apple might raise the price of the upcoming iPhone Pro model by about $270 to keep profits stable.
- AI data centers expanding rapidly have caused strong competition for key electronic parts, pushing prices up.
- Tim Cook described the price increase as a “hundred-year flood,” a huge and rare event.
- The US has restrictions on working with Chinese memory companies, which affects supply chains.
- Cook suggested all options should be considered to improve the supply of important components.
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