Apple CEO Tim Cook has cautioned consumers that price increases on some of its products are likely unavoidable due to escalating costs for memory and storage chips. In a recent interview with The Wall Street Journal, Cook stated that while Apple has made efforts to shield customers from these rising expenses, the current situation has become unsustainable.
The surge in demand for memory components, largely driven by the burgeoning artificial intelligence industry, is creating a significant imbalance between supply and consumer device needs. Cook explained that this increased demand, coupled with rising prices from memory manufacturers, presents a challenge that is being passed along.
According to data from research firm TechInsights, as cited by The Wall Street Journal, the cost of components for an iPhone Pro model could see a substantial increase. For instance, components that cost Apple approximately $50 for the iPhone 17 Pro might rise to around $200 for the iPhone 18 Pro.
Cook emphasized the need for memory pricing and supply to return to more reasonable levels for consumer electronics. This situation echoes the experiences of gamers, who have recently faced consistent price increases for consoles rather than the traditional price drops. Both Sony and Xbox have reportedly expressed concerns about the challenges of launching new consoles amidst the high demand for essential memory and storage chips.