Apple CEO warns price rises ‘unavoidable’ amid AI boom

Apple CEO Tim Cook has stated that price increases for Apple products are "unavoidable" due to the growing demand for memory chips driven by the artificial intelligence boom. The expansion of AI data centers has led to a dwindling supply of key electronic components, causing prices to surge significantly. Cook explained that while Apple has attempted to shield customers, the situation has become unsustainable. The article notes that this is a "hundred-year flood" in terms of price increases, with chips experiencing quarterly price hikes of at least 50 percent since late 2025. Specifically, the DRAM market is experiencing increased allocation towards high-bandwidth memory for AI servers, impacting general consumer electronics supply.

Apple plans to increase product prices due to a surge in the cost of memory chips, according to outgoing CEO Tim Cook. He described the situation as "unsustainable" and stated that price hikes are "unavoidable," though he did not specify when they would occur or which products would be affected. The increased cost of memory chips is attributed to the boom in artificial intelligence. Separately, President Donald Trump announced that Apple has agreed to work with Intel to manufacture its chips in the United States. The article does not specify when Apple's price increases will take effect or if they will impact upcoming product launches.