Apple Price Hike Confirmed: Tim Cook Says iPhone 18, iPhone 18 Pro, iPad & Macbook May Soon Be More Expensive

Apple price hike: If you've been planning to buy an iPhone, iPad, MacBook, or Mac, you may want to make your purchase sooner rather than later.

Apple CEO Tim Cook has confirmed that price increases that are going to take place across Apple's product lineup which is now unavoidable due to an unexpected surge in memory chip costs driven by booming demand from artificial intelligence (AI) infrastructure.

Speaking in an interview with the Wall Street Journal on June 17, Cook said that Apple has tried to shield customers from rising production costs for as long as possible. However, he said the company can no longer absorb the additional expenses on its own.

Cook said, "Unfortunately, price increases are unavoidable," and it is Apple's clearest acknowledgement that consumers should expect to pay more for future devices. Although he did not reveal which products would be affected or specify the size of the increases.

Main Reason Behind Apple Price Hike

According to Cook, the primary reason behind the expected Apple price hike is the sharp increase in the cost of DRAM memory and storage chips.

He said memory prices have increased by nearly four times over the past year, mainly because AI companies and hyperscale data centres are consuming large volumes of semiconductor components to power artificial intelligence applications.

The Apple chief also said that many major technology companies, including Microsoft, Sony, and Nintendo, have already increased prices on certain products due to similar cost pressures.

Impact On Upcoming iPhone 18 Prices

Post this announcement Apple's next-generation smartphones, iPhone 18 could see a sharp price increase.
According to research firm TechInsights, Apple may need to increase the iPhone 18 Pro price by around $270 simply to maintain its current profit margins if component costs stay elevated.

While Apple has not officially announced pricing for the iPhone 18 series, analysts expect the iPhone 18 Pro and iPhone 18 Pro Max, expected to launch later this year, to cost more than the current iPhone 17 Pro lineup.

More Apple Products Could Get Costlier

Apart from the upcoming iPhone 18 series, analysts believe future iPads, MacBooks, Mac desktops, and other Apple devices could also become more expensive if semiconductor prices continue to remain elevated.

Apple has also confirmed to 9to5Mac that price increases are expected, although the company has not provided details regarding the timing or the extent of the hikes.