Apple CEO Tim Cook told The Wall Street Journal that price increases across Apple’s product lineup this year are inevitable as memory costs continue to rise.
The company has not yet decided which devices will be affected or what the extent of the increase will be. The Wall Street Journal estimates that prices for base-model iPhones could rise by more than $200.
Cook described the current situation with memory prices as the worst he had seen in his 40 years of work in electronics, calling it a “hundred-year flood”.
Why Apple is raising prices and where they’re likely to rise first
Last year, AI data centers began to use up most of the available DRAM and NAND production capacity, creating supply issues that affected consumer hardware.
Smartphone shipments have hit historic lows, game consoles are nearing the $1,000 price point, and PC makers are reviving older hardware to keep products available. Microsoft has said it now spends four times more on memory than last year.
Apple’s supply chain advantages have so far protected its products from most of these pressures. The company recently launched a $599 MacBook, which has attracted a lot of attention in the laptop market and the company is planning to double the production of MacBook Neo.
Apple CEO Tim Cook acknowledged that the company is working to mitigate the impact of rising memory costs while maintaining profit margins, but he also said that the current situation has become unsustainable.
Full details of the changes are likely to be made public in September when Apple announces the iPhone 18 and foldable iPhone Ultra. Prices of Mac and iPad models may increase first.
The hardware lineup for fall 2026 was already expected to be expensive due to the memory shortage. Industry estimates suggest that the foldable iPhone Ultra will cost no less than $2,000.
The standard iPhone 18 isn’t expected to be released until 2027, so this year’s lineup will likely include iPhone 18 Pro and Ultra models.
An ultra-tier MacBook with a touchscreen and Apple’s next-generation M6 processor is also expected this year.
What this round of Apple price hikes means for buyers
Users considering purchasing an Apple device in 2026 should keep a few factors in mind. The current models priced at this time are likely to be available only till stocks last at retail stores, ahead of the September product cycle.
Trade-in prices for older iPhones and Macs could rise due to rising overall device prices, which could partially offset the cost increase for users upgrading.
Refurbished and certified pre-owned Apple devices may become more attractive as new device prices rise. Cellular carriers’ financing options and trade-in promotions may also help offset the price increase to some extent, depending on regional offers.
Users planning a large Apple purchase may find it beneficial to purchase before the September announcement. Those who do not have an immediate need for the new device may prefer to wait until full pricing details are released to see if the increase is significant enough to influence their decision.
AI memory supercycle and its impact on devices
Industry analysts expect memory costs to remain high beyond 2027. This differs from typical memory market patterns, which are usually caused by a lack of supply rather than consistent demand from a single end-use segment.
Analysts are now calling it a memory supercycle due to the ongoing buildout of AI infrastructure and reallocation of manufacturing capacity.
According to CCS Insight, the smartphone market is expected to decline by 15 percent in 2026. Similar pressures are affecting the PC and console markets. For example, game console prices are already rising, and Steam decks recently saw a 50 percent increase in price.
Apple has not announced when the upcoming price changes will begin or which products will be affected first.
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