Apple Set to Raise Prices Amid Ai-driven Cost Surge

WHO:

MacRumors - Tim Cook, CEO of Apple

Business Insider - Asha Sharma, head of Microsoft's Xbox unit

WHAT:

MacRumors - Apple will be raising prices on at least some products due to high costs of memory and storage.

MacRumors - Tim Cook stated, "Unfortunately, price increases are unavoidable."

Business Insider - The price for console storage components has increased over 5 times compared to two years ago, according to Asha Sharma.

Business Insider - Dell announced it would hike prices due to AI-related price increases.

Business Insider - Ford expressed concerns about rising costs related to AI in February.

WHERE:

Business Insider - The concerns about memory chip prices were communicated to White House officials by a coalition of trade groups.

WHEN:

MacRumors - The iPhone 18 Pro and iPhone 18 Pro Max are expected to launch in September.

MacRumors - The standard iPhone 18 model is rumored to launch in the spring of 2027.

Business Insider - Asha Sharma's letter referenced prices from February of the current year.

WHY:

MacRumors - The price increases are due to unsustainable costs of memory and storage that Apple can no longer absorb.

Business Insider - The AI boom is causing increased demand for chips and components, leading to higher costs for companies.

HOW:

MacRumors - Apple plans to pass some of the increased costs on to consumers.

Business Insider - Companies are experiencing a "hardware component crisis" due to skyrocketing storage costs driven by AI demand.

(UPDATED June 21, 2026 06:35 UTC)

Apple is set to raise prices on some products, as CEO Tim Cook explained that "unfortunately, price increases are unavoidable" due to unsustainable costs of memory and storage. Meanwhile, Asha Sharma, head of Microsoft's Xbox unit, noted that the price for console storage components has surged over five times compared to two years ago, a trend echoed by Dell and Ford, who are also raising prices due to AI-related costs. The iPhone 18 Pro and iPhone 18 Pro Max are expected to launch in September, while the standard iPhone 18 model is rumored to debut in the spring of 2027.