Apple Will Raise Prices on iPhones, Macs, and iPads Due to a Memory Shortage

19 June 06:48

Apple plans to raise prices on some of its products due to the rapid rise in the cost of RAM chips and storage devices. The company’s CEO, Tim Cook, made this statement in an interviewwith The Wall Street Journal, according to "Komersant Ukrainian"

According to him, Apple has long tried to absorb the rising costs of components and avoid passing the additional expenses on to customers. However, the current situation in the memory market has become financially unsustainable for the company.

At the same time, Apple has not yet specified which devices will become more expensive, by how much prices will rise, or when the new prices will take effect.

Why Apple Plans to Raise Prices

The main reason for the upcoming price increases is the high cost of two key types of components:

DRAM;
NAND flash memory.

These chips are used in nearly all of Apple’s main devices—iPhone smartphones, iPad tablets, Mac computers, and other products.

DRAM is necessary for running open applications and performing current tasks. NAND is used for permanent storage of photos, videos, apps, documents, and other data.

According to the American publication, the cost of memory and storage has risen sharply due to the global development of artificial intelligence.

How Artificial Intelligence Has Impacted the Memory Market

Companies developing artificial intelligence are actively building large data centers and purchasing significant volumes of high-performance memory.

AI servers require so-called high-speed memory, which is why manufacturers are directing more and more of their production capacity toward fulfilling orders for technology corporations.

As a result, fewer components are available to manufacturers of smartphones, laptops, tablets, cars, and other electronics.

Limited supply amid high demand is driving up memory prices. Even Apple, which traditionally holds a strong negotiating position with suppliers and purchases components in large batches, has faced this problem.

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What Tim Cook Said

Tim Cook acknowledged that price increases for Apple products have become virtually inevitable.

According to him, the company is doing everything possible to mitigate the impact of high component costs and protect customers from price increases. However, Apple can no longer fully offset these costs out of its own pocket.

Cook did not specify:

when Apple will adjust its prices;
which devices will see price increases first;
by how much their prices will increase;
whether the price increases will affect all markets at the same time.

Therefore, it cannot yet be said that prices for all iPhone, iPad, and Mac models will increase by the same amount.

Which Apple devices might see price increases

Mac computers and iPad tablets may be among the first to see price increases, as these devices are equipped with significant amounts of RAM and storage.

Apple has already adjusted the starting price for the Mac mini. The company discontinued the lower-priced configuration with 256 GB of storage, after which the base price of the computer increased.

Potential price increases may also affect future iPhone models. Apple’s next major event is traditionally expected in the fall, when the company unveils a new generation of its smartphones.

However, Apple itself has not yet confirmed the new prices for the upcoming iPhone lineup.

How Much More Expensive Could the Next iPhone Pro Be?

The analytics firm TechInsights has calculated how rising memory costs could affect the production cost of the next flagship iPhone.

According to analysts’ estimates, memory components for the new iPhone Pro could cost Apple significantly more than in the previous generation.

If the company decides to pass on the additional costs entirely to consumers while maintaining its current profit margins, the smartphone could theoretically cost about $270 more.

In this scenario, the starting price of the next iPhone Pro could be around $1,299 instead of $1,099.

However, this is merely a calculation by TechInsights. Apple has not announced the price of the new smartphone nor confirmed a price increase of exactly $270.

The company may partially reduce its own margin, change device configurations, adjust memory capacities, or apply different prices depending on the model and market.

How Much Have Component Prices Risen?

According to TechInsights’ estimates, prices for RAM and storage have risen significantly compared to the previous generation of devices.

Specifically, 12 GB of RAM for the next iPhone Pro could cost approximately $145. For the previous model, a similar component was estimated at about $39.

The cost of a 256 GB storage drive could rise from about $13 to $51.

Taking other components and manufacturing costs into account, analysts estimate that the cost of the base iPhone Pro could increase by about a quarter.

Can Apple Avoid a Sharp Price Increase?

Apple has several possible ways to mitigate the impact of the memory shortage.

The company could:

partially absorb the additional costs itself;
revise the profit margins on individual devices;
change the base configurations;
discontinue the lowest-priced models;
negotiate long-term contracts with suppliers;
use financial reserves to support the supply chain.

At the same time, Tim Cook emphasized that the current situation is extraordinary. Even Apple’s financial resources are not sufficient to indefinitely offset the sharp rise in component prices.

Who Manufactures Memory for Electronics

The global market for RAM is dominated primarily by three major manufacturers:

Samsung;
SK Hynix;
Micron.

NAND flash memory is also produced by Kioxia and SanDisk.

Demand from AI companies has allowed memory manufacturers to significantly increase their revenue and profits. At the same time, building new factories takes time, so it is impossible to quickly resolve the component shortage.

Analysts expect high memory prices to persist throughout 2027.