Apple to raise iPhone, Mac and iPad prices: AI‑driven chip shortage forces 'unavoidable' hike
Apple’s price hikes may trigger broader tech industry increases amid chip crisis
Apple Inc. plans to raise prices on its products to offset surging memory and storage chip costs, CEO Tim Cook told the Wall Street Journal, marking a rare move by the tech giant to pass semiconductor supply pressures directly to consumers amid a tightening global chip shortage.
The price increases are expected to hit iPhones, iPads, Macs and other devices, with analysts suggesting the iPhone 18 could see a $100–$150 hike or that lower‑storage models could be priced up more sharply to push buyers toward higher‑margin options.
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Why Apple is raising prices
The decision comes as the industry faces a memory chip shortage driven by an explosion in demand for artificial intelligence (AI) systems, which require massive amounts of DRAM and high‑speed storage.
Tom’s Guide reported that the shift to 2nm chips as a cost driver, noting the associated expense could add an extra $35 to Apple’s costs per handset, with total chip costs rising to $85 per iPhone — costs that will likely fall on the consumer.
Bloomberg highlighted that a growing procession of tech leaders, including Elon Musk and Tim Cook, are warning about a global crisis in the making: a shortage of DRAM is beginning to hammer profits, derail corporate plans and inflate price tags across devices and data centers, with the crunch only expected to worsen.
What prices could rise
Analysts and industry publications are already forecasting specific price impacts:
iPhone 18 Pro: Tipped for a big price hike in 2026, potentially adding $35 per handset due to 2nm chip costs, with total chip costs rising to $85 per unit.
General iPhone pricing: Could increase by $100–$150 for the anticipated iPhone 18, or see lower‑cost, low‑storage models priced up more than high‑storage variants.
Component costs: Apple may pay up to $280 for the A20 Pro chip used in high‑end iPhone models — a more than sixfold increase from $45 in 2024.
Quarterly negotiations: Analyst Ming‑Chi Kuo reports Apple has shifted to quarterly price negotiations with suppliers, expecting Q2 2026 hikes similar to recent 10–25% increases.
Apple has not announced exact percentage increases or which products will be affected first, but the company is expected to roll out higher prices gradually rather than in a single wave.
Chip crisis
The memory chip shortage is not just an Apple problem — it is a global tech industry crisis.
Rampant AI demand for memory is fueling a growing chip crisis that is beginning to hammer profits, derail corporate plans and inflate price tags on everything from laptops and smartphones to automobiles and data centers.
Since the start of 2026, Tesla, Apple and a dozen other major corporations have signaled that the shortage of DRAM will constrain production.
Tech leaders including Elon Musk and Tim Cook are warning that the crunch is only going to get worse.
The cumulative revenue impact of the earlier semiconductor shortage was over $500 billion globally from 2020 to 2022, affecting PCs, smartphones, data centers, consumer goods and especially the auto sector.
Now, a new wave of shortages driven by AI is reproducing similar pressures.
What Apple’s move means for consumers and the industry
For consumers:
New iPhones, iPads and Macs could cost more starting in the second half of 2026.
Buyers may be nudged toward higher‑storage models if low‑storage versions are priced up more sharply.
Budget‑conscious shoppers could face a shrinking range of affordable options.
For the tech industry:
Apple’s move sets a precedent that other device makers could follow, potentially leading to wider price increases across smartphones, laptops and tablets.
Suppliers may gain more leverage in negotiations as demand for AI‑focused memory continues to outstrip supply.
Margins for hardware companies could compress if they choose to absorb costs rather than raise prices.
