Apple CEO Tim Cook confirmed in a Wall Street Journal interview that product prices will rise to offset memory and storage chip shortages. The company has historically maintained predictable pricing structures, making this shift significant for consumers who rarely see cost changes.

Apple typically absorbs component cost fluctuations through supply chain management, but Cook said current pressures have "become unsustainable." Suppliers are passing "huge price increases" while supply remains constrained despite strong consumer demand.

The iPhone 18 Pro could face a $200 increase, potentially reaching a $1,299 starting price this fall. Apple may shield entry-level models by raising storage upgrade costs instead. Upcoming products like new Apple TV devices and M5 Macs could help balance margins without pricing out mainstream customers.

Cook described the situation as a "100-year flood" in his 40-year career. Apple won't build fabrication facilities but will invest in partner capacity. Regulatory changes, including relaxed restrictions on Chinese chip suppliers, might ease supply constraints before September's iPhone launch.