Apple is preparing to increase prices across its iPhone, iPad and Mac lineup as soaring semiconductor costs and a worsening global memory chip shortage put pressure on the company’s margins.
According to reports, Apple CEO Tim Cook told the Wall Street Journal that the tech giant may pass some of the rising chip expenses on to consumers, marking a rare move for the company as it grapples with escalating production costs.
The expected price increases come amid a surge in demand for memory and storage chips, largely driven by the rapid growth of artificial intelligence (AI) technologies. Industry analysts say the shift to advanced 2-nanometer chip manufacturing is significantly increasing production expenses, adding an estimated $35 per device and pushing total chip costs for some iPhone models to around $85.
Analysts predict that upcoming premium devices, including the iPhone 18 Pro, could see noticeable price hikes in 2026. Some reports suggest overall iPhone prices may rise by $100 to $150, while lower-storage models could face steeper increases than higher-capacity versions.
Apple is also reportedly paying substantially more for key components. The cost of its high-end A20 Pro chip is expected to reach as much as $280 per unit, compared with around $45 in 2024. Industry expert Ming-Chi Kuo further claims that Apple has moved to quarterly pricing negotiations with suppliers as chip costs continue to fluctuate.
While Apple has not confirmed specific price increases or announced which products will be affected first, the company is expected to introduce higher prices gradually rather than through a single large adjustment.
The move reflects a broader crisis affecting the global technology industry. Growing AI-related demand for memory chips has led to supply shortages, increasing costs for smartphones, laptops, data centers and other electronic devices. Several major technology companies, including Apple and Tesla, have warned that limited DRAM supplies could impact production and profitability throughout 2026.
For consumers, the changes could mean more expensive Apple devices in the coming months, while the wider industry may face similar price increases as manufacturers struggle to cope with rising semiconductor costs and constrained supply.
Read more: Is Apple hinting at a foldable iPhone Ultra in the iOS 27 beta?
