Rising memory chip costs could push iPhone prices higher amid supply pressure from data centre demand.
Image: The Star
Outgoing Apple CEO Tim Cook said rising demand for memory chips driven by the AI boom will force price increases across Apple products. He said the company has tried to shield customers, but the situation has become “unsustainable.”
Cook said tight supply and surging demand from AI data centres have pushed memory chip costs sharply higher. He warned that price hikes are now unavoidable, though he did not specify which products would be affected.
Apple’s next major launch is expected in September, featuring the iPhone 18 lineup. Analysts estimate the iPhone Pro model could need a price increase of about $270 to maintain current margins.
Cook described the surge in chip costs as unprecedented, calling it a “hundred-year flood” for the electronics supply chain.
