Apple CEO Tim Cook confirmed that product price increases are unavoidable as memory chip costs surge, calling the current situation unsustainable. Cook told The Wall Street Journal that the company has tried to shield customers but can no longer absorb the rising costs driven by AI demand and supply chain disruptions.

The AI boom has intensified competition for memory chips, essential components in smartphones and other devices. Additionally, conflicts affecting helium supplies have disrupted semiconductor production, compounding cost pressures. Research firm Omdia projects global smartphone prices will rise approximately 20% in 2026 to record levels.

Apple's upcoming iPhone models may cost up to $150 more than current versions as the company upgrades specifications to support AI features. The iPhone 17 lineup has driven 17% sales growth in early 2026, particularly in China. Apple previously removed the entry-level Mac Mini, increasing its starting price by about $200 earlier this year.

Other tech giants including TSMC and Samsung have also signaled pricing pressure in the chip sector, with Nintendo planning Switch 2 price hikes from September. This represents a fundamental shift in consumer electronics pricing rather than temporary market volatility.