The proliferation of AI data centers has reduced the supply of key electronic components, causing prices to soar.
Published June 18, 2026
New demand for memory chips from the artificial intelligence boom will force the price of Apple products to rise, outgoing Apple CEO Tim Cook told The Wall Street Journal.
“Unfortunately, price increases are inevitable,” he told the newspaper on Wednesday, adding that his company was “trying to protect our customers from price increases” but it had become “unsustainable.”
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Cook did not specify the timing of the price increase or which devices would be affected. For example, it is unclear how much the price of Apple’s iPhone 18, scheduled to be released in September, will be affected.
“Consumers want these devices, supplies are low, and memory manufacturers are raising prices significantly,” Cook said.
Citing estimates from research firm TechInsights, the magazine reported that Apple would need to raise the price of iPhone Pro models by $270 to maintain current profit margins.
The rapid expansion of AI data centers is forcing consumer electronics companies into fierce competition as the supply of key components decreases and prices rise significantly. Chips have been increasing in price by at least 50% every quarter since late 2025.
Cook, who has worked in the high-tech electronics supply chain throughout his career, including stints at IBM and Compaq before joining Apple, said he had never experienced price increases like this, calling it a “once-in-a-century flood.”
Cook told the Journal that memory and storage costs are both concerns for Apple, with a particular focus on the dynamic random access memory (DRAM) market driven by AI infrastructure. He said more supply is being allocated to high-bandwidth memory, which is often used by AI servers.
China has leading memory and storage companies, but U.S. companies would likely need specific licenses to work with them under national security laws. Asked whether restrictions should be eased, Cook said: “Everything needs to be on the table…I think we should look at all supplies.”
