Tim Cook: Apple Price Hikes 'Unavoidable'

Apple's CEO says the days of holding the line on prices are over. In a Wall Street Journal interview, Tim Cook said Apple will raise hardware prices to cope with a spike in the cost of memory and storage chips, calling the hikes "unavoidable" and saying efforts to shield customers are "unsustainable." He wouldn't say when prices will go up, by how much, or which devices will be hit, though analysts expect Macs and iPads could move first, with bigger jumps possible when the iPhone 18 lineup—including a rumored foldable model—arrives in September.

Behind the shift: AI. Surging demand from companies like Google, Microsoft, Meta, and Amazon has driven DRAM and NAND prices to roughly four times last year's levels, and research firm TechInsights estimates simply preserving Apple's margins could tack about $270 onto the next iPhone Pro, potentially pushing it to around $1,299. Cook said Apple is willing to deploy its sizable cash reserves to help boost chip supply but ruled out building its own memory plants. "We're willing to use our balance sheet to help be a part of the solution," he said. "Obviously, more capacity is needed." With suppliers prioritizing AI servers and a projected shortfall for consumer devices, Morgan Stanley sees US phone and PC prices rising about 15% this year. Read the full piece at the Journal.