Tim Cook warns of inevitable cost increases due to AI component demand
Price increases for 2026’s new iPhone models are inevitable as the tech industry continues to struggle with out-of-control component prices driven by the boom in AI data center development, according to Apple CEO Tim Cook.
To talk Wall Street Magazine Ahead of the expected launch of iPhone 18 models in September, Cook said Apple faces unprecedented competition for memory and storage and consumers should expect to pay more.
“We are doing our best to mitigate the massive increases that have been communicated to us and trying to protect our customers from the increases, but the situation has become unsustainable,” he said. “I haven’t seen anything like this in any region in over 40 years.”
Cook had previously reported that Apple was not immune from the crisis; In Australia, the company has quietly adjusted the availability of its Mac computers by withdrawing certain models of its Mini and Studio products and effectively raising the price of the entry-level Mac from $999 to $1299.
Meanwhile, prices of computers, game consoles and other devices that need memory or storage have risen significantly this year, even for models that remain unchanged from eight years ago. Tech giants are spending billions of dollars building new facilities with extraordinary amounts of high-bandwidth memory, so manufacturers have shifted production lines to serve them, forcing others to compete when they reach the upper limits of production capacity.
Cook did not comment on prices, although it’s not impossible that this year’s iPhones will cost consumers $200 or $300 more than last year, given the surge in laptops and consoles.
Last year, the iPhone 17 was launched at $1400 and the 17 Pro was launched at $2000.
There is a widespread prediction that Apple will introduce a foldable iPhone this year in addition to the iPhone 18 and iPhone 18 Pro models. At its latest worldwide developer conference, it also unveiled a new suite of AI tools, including a more ChatGPT-like Siri, that will be coming to its newer phones.
Cook announced he would step down as CEO in September after 15 years in the role; His successor and longtime vice president of hardware engineering, John Ternus, now faces the complex task of securing ample supplies of components while keeping prices in check.
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Tim Biggs is a writer covering consumer technology, gadgets, and video games.Connect with: X or email.
