Apple to Increase Prices Amid Rising RAM Costs—Tim Cook Confirms

Apple is planning to raise product prices in response to the global memory shortage and rising RAM costs. This was confirmed by CEO Tim Cook during an interview with The Wall Street Journal (WSJ), where he stated, “Price increases are inevitable.”

“We have made every effort to absorb significant price hikes passed on by our suppliers. We’ve tried to shield our customers from these increases, but the situation has become unsustainable,” said Cook. Apple has historically absorbed rising component costs to maintain consumer pricing but has now reached its limit due to surging memory costs.

The Growing Demand for Memory

The primary cause of the current spike in RAM prices is the rapid increase in demand for memory in large-scale data centers built by AI companies. Major cloud providers and AI startups have been acquiring massive amounts of high-bandwidth memory (HBM) and DDR5 for training and inference purposes, leading to a shortage of traditional DRAM supply. Suppliers like Samsung Electronics, SK hynix, and Micron Technology have prioritized server products, reducing allocations for consumer DRAM.

This impact is not limited to Apple; it extends to other categories like gaming consoles, PCs, and smartphones. Cook commented to the WSJ, “There is a shortage of supply when consumers are seeking devices. Memory manufacturers have been passing on massive price increases. It is crucial that memory prices and supply for consumer products return to reasonable levels.”

Apple’s Current Measures

Ahead of a full-scale price hike, Apple has already implemented specific measures for certain products. As of March 2026, the company ceased sales of the Mac Studio equipped with 512GB of RAM. This decision was likely due to the unfeasibility of maintaining profitability for that configuration amid rising memory costs.

In addition, Apple removed the $599 entry-level model of the Mac Mini from its lineup, raising the base price to $799. These changes indicate a restructuring of price tiers and memory capacity options.

Analyst Tim Culpan has suggested that Apple might also discontinue the base configuration of the MacBook Neo (a low-cost model) and unify its lineup with a single $699 512GB storage model. If this materializes, it will raise the barrier for entry-level users.

Impact on Future Products

Apple is expected to unveil its next-generation iPhone lineup in the fall of 2026, with pricing likely to be a key focus. WSJ reports that the iPhone 18 Pro could retail for as high as $1,299, a $200 increase from the current iPhone 17 Pro price of $1,099.

While Cook has refrained from specifying the timing or products affected by the price increases, the likelihood of a rapid drop in memory prices remains slim. Industry insiders speculate that price adjustments could extend to other high-end products like the iPad Pro and MacBook Pro in addition to the iPhone.

Ripple Effects Across the Industry

Apple’s price hike is far from an isolated incident. Last week, Nothing CEO Carl Pei also discussed the ongoing rise in smartphone prices. The increased cost of memory is putting pressure on Android smartphone and PC manufacturers alike.

Notably, the consumer SSD market has been significantly impacted, with some experts pointing out that the “retail market has almost disappeared.” Recently, SanDisk substantially raised the price of SSDs designed for the PlayStation 5. These trends reflect a structural shift caused by AI-driven demand, which is straining memory supplies for general consumer products—a phenomenon some are calling “RAMageddon.”

Editorial Opinion

In the short term, the biggest concern is how Apple’s price hikes will affect the 2026 product cycle, particularly if the iPhone 18 Pro reaches a price of $1,299. It remains to be seen how elastic consumer demand will be at these new price points. While Apple has historically succeeded in passing on costs due to its strong brand and ecosystem, two consecutive years of price increases may have eroded consumer tolerance. Competitors are expected to follow suit, potentially leading to a redefinition of price tiers across the smartphone market.

From a long-term perspective, the key question is whether the current memory shortage represents a transient supply-demand shock or the beginning of a structural shift. If AI-driven demand continues to grow, DRAM manufacturers are likely to focus their investments on server memory, keeping consumer supply tight for the foreseeable future. While Apple may attempt to differentiate itself through proprietary memory controllers and packaging technologies, it remains challenging to internalize DRAM production. Consequently, Apple’s strategy may shift further towards emphasizing premium products while reducing its presence in lower price tiers.

References

• The Verge — Published on 2026-06-17