Apple price hikes imminent due to chip shortage

In Short:
– Apple CEO Tim Cook announced upcoming price increases for products due to a global memory chip shortage.
– Smartphone prices may rise by around 20% globally in 2026 due to ongoing supply challenges.

Apple CEO Tim Cook has announced imminent price increases for the company’s products due to a global memory chip shortage.This shortage has been exacerbated by rising demand for DRAM and NAND chips in AI data centres, affecting supply chains and pricing.

Price hikes imminent

Cook described the situation as “a hundred-year flood” and indicated that the impact on consumers will soon become evident, particularly for iPhones, iPads, and Macs.

Analysts suggest the price of the iPhone 18 Pro could rise to approximately $1,299, reflecting a $200 increase.

Morgan Stanley’s analysis shows memory prices have surged more than sixfold within the past year.

The shortage has compelled manufacturers like Micron Technology, Samsung Electronics, and SK Hynix to adjust production.

Apple may use its cash reserves to help alleviate this supply issue, as indicated by Cook’s statements.

Research firm TechInsights has noted that Apple’s pricing strategy may align with its upcoming back-to-school promotions.

Never been this excited for an apple product.

iPhone 18 Pro may be Apple’s best selling series ever. pic.twitter.com/Wj1t8KRNno

— Schrödinger (@phonefuturist) June 15, 2026

Consumer impact

Predictions indicate that smartphone prices globally could rise by approximately 20% in 2026 due to these ongoing conditions.

Intel’s CEO anticipates the chip supply problems may persist until 2028, further complicating the market.

Trends in global smartphone sales show a significant decline, with a projected fall of 14% in shipments for 2026.

This situation highlights the critical impact of the chip crisis on the consumer electronics landscape.

With memory costs dominating production expenses, manufacturers are under immense pressure to adapt.