By Benadeta Mwaura - Reporter
United States, 18 June 2026 - Apple has announced plans to increase prices for some of its products as soaring demand for artificial intelligence infrastructure drives up the cost of critical memory and storage chips used in consumer devices.
The announcement by outgoing Apple Chief Executive Officer Tim Cook marks one of the clearest signs yet that the global race to build AI systems is beginning to affect everyday consumers through higher technology prices.
Speaking to The Wall Street Journal, Cook said Apple could no longer absorb the rising costs associated with memory components.
“Unfortunately, price increases are unavoidable,” Cook said. “We’re doing our best to mitigate the huge increases that are being passed to us, and we’ve been trying to shield our customers from the increases, but the situation has become unsustainable.”
Cook did not specify which products would be affected, when the new pricing would take effect, or the extent of the increases. However, industry analysts expect the higher costs could affect upcoming products, including the anticipated iPhone 18 series and Apple's first foldable smartphone, both expected to launch later this year.
The price pressures stem from a global shortage of memory chips, particularly DRAM and NAND components used in smartphones, tablets and computers. The shortage has been fuelled by unprecedented investment in AI data centres by major technology companies, including Amazon, Microsoft, Meta and Alphabet, which are collectively spending hundreds of billions of dollars on AI infrastructure.
As demand for high-bandwidth memory used in AI servers surges, chip manufacturers are increasingly prioritising supplies for data centre operators, leaving fewer components available for consumer electronics manufacturers.
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The impact is being felt across the technology industry. Taiwan Semiconductor Manufacturing Company (TSMC), the world's largest contract chipmaker and a key Apple supplier, recently indicated that rising production costs could eventually translate into higher prices for customers. Samsung has also warned that memory shortages could push up the cost of electronic devices.
Apple has historically used its vast supply chain and purchasing power to negotiate favourable component prices. However, the rapid growth of AI infrastructure has altered market dynamics, weakening the company's ability to shield consumers from rising costs.
Beyond AI demand, geopolitical tensions are adding further pressure to semiconductor supply chains. Ongoing disruptions linked to the conflict involving Iran have affected supplies of helium, a key gas used in chip manufacturing, contributing to higher production costs across the industry.
The development signals a broader shift in the technology sector, where the AI boom is increasingly influencing the cost of everyday devices, raising concerns that consumers worldwide may soon pay more for smartphones, laptops and other digital products.