Apple CEO Tim Cook has stated that price increases for its products are “unavoidable” due to soaring costs for memory and storage chips, driven by AI infrastructure demand. According to Cook, chip costs have risen between 80% and 200%, making the situation unsustainable. This could lead to the iPhone 18 Pro costing over $200 more than its predecessor to maintain margins. While Apple’s stock has stagnated, the company is mitigating pressures through a new chip manufacturing deal with Intel.
Apple CEO Tim Cook told The Wall Street Journal that “price increases are unavoidable” for most products. Cook cited the AI infrastructure buildout, which is squeezing the global supply of crucial memory and storage chips.
The cost of these chips has risen between 80% and 200%, largely driven by explosive data center demand. Cook stated Apple has tried to mitigate increases but the situation is now unsustainable, potentially affecting upcoming September launches.
Specific timing and amounts were not disclosed, but the iPhone 18 Pro may need a price jump of over $200 relative to the 17 Pro to maintain margins. With a Fall event months away, product prices could reach their highest ever.
The potential price hikes are already affecting market sentiment around Apple stock. AAPL has stagnated around $297 over the last 30 days, slowing its 9% climb earlier in 2026.
Some Wall Street firms have changed their tone, with Phillip Securities analyst Helena Wang maintaining a ‘hold’ rating and warning the stock could slump further. However, Wedbush and Bank of America reiterated buy ratings this week.
Apple is leaning into the chip market to stay afloat, recently agreeing to a deal where Intel will manufacture chips for the iPhone maker. This move capitalizes on industry growth despite Apple’s late entry into the chip and AI race.
