Apple CEO Tim Cook told The Wall Street Journal that price increases for consumer devices are becoming unavoidable. The company can no longer absorb the rising costs of memory and storage components without hurting its bottom line. Cook described the current shortage as a hundred-year flood, noting he has not seen such extreme market conditions in 40 years.

AI companies are driving massive demand for high-end chips, which has left a supply deficit for consumer electronics. While manufacturers like Samsung and Micron are increasing capacity, they are prioritizing expensive server chips over mobile components. This shift forces Apple to consider significant hikes, with research firm TechInsights suggesting the iPhone 18 Pro could cost $270 more to maintain current margins.

Hardware costs are already hitting consumers through product lineup changes. Apple recently hiked the Mac mini price from $599 to $799 by removing the entry-level model. Future iterations of the iPhone, iPad, and Mac lineups face similar pressure as the company struggles to secure enough DRAM to support new AI features.