Apple faces increasing production costs as the demand for memory and storage chips from artificial intelligence servers tightens global supplies. This shortage is pushing prices higher for essential components like DRAM and NAND memory, which are critical for Apple’s devices. The company plans to respond by raising prices on some of its hardware products, marking a shift from its usual efforts to avoid broad price hikes.
While Apple has not specified exact timing or which devices will see cost increases first, industry analysts expect Macs and iPads to be initial candidates due to their reliance on these chips and the greater flexibility Apple has in adjusting their prices. The iPhone lineup, especially the upcoming iPhone 18 Pro, faces tougher pricing decisions. Market estimates suggest the iPhone 18 Pro could see a price increase nearing $270, with potential for broader iPhone price adjustments if chip shortages continue into 2026.
Apple’s chief executive indicated the company will explore various strategies to mitigate component cost inflation. These include potential price changes and negotiating longer-term supplier contracts to secure more stable pricing. Since Apple is a prominent player in consumer electronics, its moves could influence competitors worldwide, potentially triggering a wider industry-wide price adjustment driven by the AI-related chip shortage.