Apple confirms iPhone, Mac and iPad prices will rise soon:AI chip shortage to drive cost hikes, Tim Cook calls it a ‘hundred-year flood’

Buying a new iPhone may soon become a little more expensive. And it’s not just iPhones; Macs and iPads could also see price hikes in the coming months. After holding prices steady while several smartphone brands increased their rates, Apple has now admitted that keeping prices unchanged is becoming difficult. According to Apple CEO Tim Cook, rising costs of key components used inside devices are forcing the company to consider increasing prices. Why is Apple planning to raise prices? The main reason is the growing cost of memory and storage chips, which are essential parts of smartphones, tablets and laptops. Demand for these chips has surged as technology companies around the world invest heavily in artificial intelligence (AI). From AI-powered data centres to advanced computing systems, companies are buying huge quantities of memory chips, leaving less supply available for consumer electronics. Speaking to The Wall Street Journal, Cook said Apple has tried hard to protect customers from these rising costs, but the situation has become increasingly difficult. Unfortunately, price increases are unavoidable. We’re doing our best to mitigate the huge increases that are being passed to us, and we’ve been trying to shield our customers from the increases, but the situation has become unsustainable. How AI is affecting the cost of your gadgets The rapid AI boom is creating a shortage of memory and storage chips worldwide. As chip manufacturers focus more on supplying powerful AI servers, fewer chips are available for products such as smartphones, tablets and laptops. This has pushed prices significantly higher. Cook explained that Apple is facing pressure from suppliers because much of the available chip supply is being redirected towards AI-related hardware. There’s less supply at a time when consumers want devices, and the memory guys are passing along huge price increases. We definitely need memory pricing and supply to return to reasonable levels for consumer products. That’s the bottom line. Which Apple products could get more expensive?
Apple has not announced exactly when the price increases will happen or which products will be affected first. However, reports suggest that Macs and iPads could see higher prices before iPhones. Apple recently increased the starting price of the Mac Mini, which some industry observers believe could be an early sign of broader price adjustments across Apple’s product lineup. Also read: Logged out of WhatsApp suddenly? It could be warning sign: Check if your account is hacked, and important ways to recover it

What about the iPhone 18? Apple is expected to unveil the iPhone 18 series in September, and rumours also suggest the company could introduce its first foldable iPhone alongside the lineup. While Apple has not directly connected upcoming products to the planned price increases, analysts believe future iPhones could carry higher price tags if component costs continue to rise. According to research firm TechInsights, Apple may need to add around $270 to the price of a future iPhone Pro model to maintain its current profit margins if chip costs remain elevated. Bad news for bargain hunters
Many Apple buyers wait for a new iPhone launch because older models usually become cheaper afterward. This year, however, those discounts may not be as significant. If Apple raises prices across its portfolio, the company could reduce the size of the price cuts traditionally offered on older iPhone models. That means customers hoping to grab an iPhone 17 at a steep discount after the iPhone 18 launch may end up paying more than expected. Tim Cook: “I’ve never seen anything like this” Cook described the current chip shortage and pricing situation as one of the most unusual challenges he has witnessed in decades of working in the technology industry. This is a hundred-year flood. I’ve never seen anything like it in any area in over 40 years. For now, Apple has not announced a timeline for the price increases. But with AI demand continuing to soar and chip supplies remaining tight, consumers may need to prepare for more expensive iPhones, Macs and iPads in the near future.