Memory Price Surge May Drive Up iPhone and Other Apple Devices

A memory chip shortage fueled by the rapid advancement of artificial intelligence has impacted Apple. CEO Tim Cook acknowledged in an interview with The Wall Street Journal that price increases for devices are unavoidable. Component costs have surged fourfold over the past year, and even cost-optimization efforts have failed to mitigate the situation.

The upcoming iPhone, set for a September launch, is drawing the most attention. Experts believe this product will be the first to reflect price changes. However, the cost hike may extend across Apple’s entire device lineup, including Macs, iPads, Apple Watches, and the Vision Pro headset, as all depend on DRAM and NAND chip supplies.

TechInsights estimates that Apple must raise the iPhone 17 Pro’s price by $270 to maintain its profit margins. The current base model retails for $1099. Meanwhile, the company continues advancing its AI strategy, which could further escalate memory demand in the future.

Apple has previously faced AI-related challenges. Earlier this year, it paid $250 million in a lawsuit over false advertising claims tied to unfulfilled AI feature promises. At the recent WWDC conference, Apple unveiled updated Siri and other AI capabilities, but their implementation will require additional resources.