TL;DR:
Apple has joined the ranks of tech giants attributing rising product costs to artificial intelligence. In a statement to the Wall Street Journal, CEO Tim Cook declared that price increases are “unavoidable” due to soaring expenses associated with memory and storage chips. Significant price surges affecting everything from iPhones to MacBooks could soon impact consumers directly.
What transpired:
Cook expressed that Apple has made efforts to “shield our customers from the increases,” yet the present AI-induced memory crunch resembles a “hundred-year flood.” From October 2025 to February 2026, memory prices surged by as much as 90%.
The phenomenon of escalating gadget prices is not novel, but it weighs heavily when a titan like Apple is involved.
Recent figures indicate that nearly 70% of smartphones sold in the United States in the last quarter of 2025 were iPhones, according to Counterpoint Research.
Although Cook failed to outline a definitive timeline or a comprehensive list of products poised for price increases, Apple recently lifted the price of the Mac mini in response to AI demand.
The grim forecast:
iPhones, initially a luxury tech item, now see the Pro line commencing at a staggering $1,099. Analyses by the WSJ suggest that the iPhone 18 Pro could open at a shocking $1,299 if Apple aims to maintain its hefty profit margin, which stood at a robust 47% for the iPhone 17 Pro.
Manufacturing costs for the forthcoming device could escalate from $582 to $726, with DRAM being the principal culprit. The expense for memory in the iPhone 17 Pro, which was about $39, might surge to $145 in the 18 Pro.
Siri’s ironic twist:
While artificial intelligence is spurring higher costs for iPhones, Apple simultaneously anticipates that it will incentivize upgrades.
This impending price elevation coincides with renewed attention on Siri’s advanced AI capabilities, marking Apple’s long-overdue endeavor to monetize its AI initiatives, which have yet to yield substantial returns.
Indeed, Bloomberg’s Mark Gurman has speculated that enhancements to Siri might lead Apple to introduce a subscription fee for the service.
Bottom line:
The iPhone 18 Pro and Pro Max, along with Apple’s inaugural foldable phone, are expected to launch this fall. However, the WSJ indicates that the financial implications of price hikes could extend to Macs and iPads even sooner.
For anyone contemplating a new iPhone this decade, the prudent advice is to purchase now—or invest in a remarkably durable phone case.
Source link: Techbrew.com.
