iPhone price increase warned by Tim Cook as Apple braces for memory chip crunch

iPhone price increase flagged by Tim Cook ahead of iPhone 18 launch

Apple’s outgoing chief Tim Cook warned that the upcoming iPhone 18 will carry a higher price tag, citing a persistent memory‑chip shortage that is unlikely to ease soon. In a phone interview with the Reuters, Cook said the company has been absorbing component‑cost spikes throughout 2026, but “the situation has become unsustainable … price increases are unavoidable.”

Analysts estimate the extra cost of memory and storage could add ↓ $150 per device, pushing the flagship’s retail price up to ↓ $200 above the current iPhone 17 Pro. The escalation reflects intense competition from AI‑focused firms that now dominate the memory market.

“We’re doing our best to shield customers, but the math forces us to adjust pricing,” Cook told the Wall Street Journal.

While Apple has not disclosed which models will see the hike, the trend suggests the premium tier will bear the brunt. Industry observers note that Apple’s pricing strategy will be a key factor in its Q4 earnings outlook.

Words by Julian Reed (Consumer Electronics Expert).