Apple is preparing to raise prices on some products as a global memory shortage tied to artificial intelligence demand pressures the consumer electronics supply chain, CEO Tim Cook told The Wall Street Journal.
Cook described the expected increases as “unavoidable” and called the memory market “unsustainable,” though he did not specify which devices would be affected or when higher prices might take effect. Apple declined further comment to CNBC.
The shortage stems from surging demand for advanced memory used in AI data centers. Nvidia-powered AI systems require large amounts of high-bandwidth memory, while smartphones, laptops and tablets depend on DRAM and NAND storage made by many of the same suppliers. Micron, SK Hynix and Samsung dominate the market, and shifting factory capacity toward high-bandwidth memory can reduce output of conventional memory used in consumer devices.
Analysts said Apple’s warning is notable because the company is usually seen as better protected than rivals due to its purchasing scale and supplier relationships. Gartner’s Ranjit Atwal said the disclosure shows the severity of the supply problem. IDC analyst Francisco Jeronimo said consumers may face AI-related costs before seeing the full benefits of AI features on their own devices.
Analysts are divided on how Apple may respond. Jeronimo expects $100 increases for the iPhone Pro and Pro Max, while lower-priced models may remain unchanged. BofA Securities analysts also anticipate increases for many Mac and iPad models. Others say Apple could use its scale to hold some prices steady and gain share from Android manufacturers facing similar cost pressures.
The memory shortage also affects product design. Apple is adding more RAM to newer devices to support on-device AI features, including upcoming Siri and dictation upgrades, which will be limited to recent models.
Cook said Apple may use its cash reserves to help expand memory supply.