Apple warns of price rises as AI boom pushes up chip costs

Apple CEO Tim Cook has announced that consumers should prepare for unavoidable price increases across the company's product range. This development stems from the escalating costs of memory and storage chips, primarily driven by the booming artificial intelligence industry, which has made it unsustainable for Apple to absorb these expenses further.

Cook, who is slated to transition to Executive Chairman on September 1, 2026, revealed in a Wall Street Journal interview that Apple has actively attempted to protect customers from rising component costs. However, the substantial demand for advanced memory chips, crucial for AI infrastructure, has led to a significant supply crunch and sharp price hikes from suppliers, which the company can no longer fully offset. The exact products affected or the timing of these price adjustments were not specified.