Apple has increased prices on four existing iPhone models by $100 each. The iPhone 16 now starts at $799, the iPhone 17e at $699, the iPhone 17 at $899, and the iPhone Air at $1099. The price hikes follow CEO Tim Cook's earlier comments about rising component costs.

In late June, Cook told The Wall Street Journal that Apple could no longer absorb the increased cost of memory and storage chips, which are in high demand from AI and neocloud companies building data centers. He described the memory shortages as a "hundred-year flood," noting he had never seen anything like it in over 40 years.

The price adjustments come as Apple introduced the iPhone 18 Pro and iPhone 18 Pro Max, which also led to the discontinuation of the iPhone 17 Pro and iPhone 17 Pro Max. The new pricing takes effect immediately on Apple's online store.

The scale of the AI infrastructure buildout has sparked debate over whether demand will ultimately justify the hundreds of billions of dollars being invested, but for now it is driving supply constraints across the semiconductor industry.