Apple to Raise Product Prices as Chip Costs Climb

Apple plans to raise prices on its products because of increasing costs for memory and storage chips, CEO Tim Cook said. Cook told The Wall Street Journal that price increases are unavoidable. He added that the company has tried to shield customers from higher costs passed along by suppliers but can no longer absorb them.

President Trump announced that Apple will collaborate with a semiconductor manufacturer to design and make chips in the United States. The partnership is intended to give the company additional manufacturing options inside the country. Trump also wrote that previous administrations allowed semiconductor factories to move overseas and that tariffs are needed to protect domestic industries.

The post noted that America needs its semiconductor industry to return to the United States.

Cook did not specify how broad the price increases will be or when they will take effect. The announcement came as Apple’s next major product launch is expected in September. " — Tim Cook, CEO, in interview published Wednesday (The Wall Street Journal) The rollout will feature the iPhone 18.

A new, foldable iPhone is expected, too. Price hikes for products including Macs and iPads could hit consumers prior to September.

The AI data center boom has been gobbling up the world’s supply of memory chips, creating a shortage and causing prices to skyrocket. Apple has no plans to get into the memory-chip business itself. >"We’re willing to use our balance sheet to help be a part of the solution.

" — Tim Cook, CEO (The Wall Street Journal) Inflation surpassed 4% in May for the first time in three years as higher energy costs amid the Iran war weighed on prices.