Apple CEO Tim Cook Says Memory Chip Shortage Forces Device Price Increases

Apple CEO Tim Cook said price increases on the company's devices are unavoidable because of a global shortage of computer memory and storage chips. Cook made the remarks in an interview with The Wall Street Journal published June 18. " "Unfortunately, price increases are unavoidable," Cook told the Journal.

Cook declined to specify when the increases will take effect or which products will be affected. Apple plans to launch its new iPhone 18 lineup later in 2026. Cook, who is scheduled to step down as CEO on September 1, linked the shortage to surging demand from artificial intelligence companies for memory chips used in servers.

"There's less supply at a time when consumers want devices and memory guys are passing along huge price increases," he said. "We definitely need memory pricing and supply to return to reasonable levels for consumer products. " TechInsights estimated that the cost of the iPhone Pro 19 will rise more than $200, reaching approximately $1,299.

Shawn Kim, head of Morgan Stanley's Europe and Asia technologies division, said memory prices have risen more than sixfold over the last year. He said the memory chip market is projected to reach $890 billion by the end of 2026, up from about $220 billion in 2025. Kim said PC makers are expected to face a 15% shortfall in chips in 2027, equal to about 58 million PCs.

Smartphone manufacturers could face a 12% shortfall, equal to about 134 million units. "Companies may have to raise prices, cut specifications, delay launches and accept lower profits," Kim said on Morgan Stanley's "Thoughts on the Market" podcast June 8. , on May 29.