Highlights
- Apple CEO Tim Cook confirmed that rising RAM and storage costs are driving “unavoidable” price increases across iPhones, Macs, and iPads.
- Estimates suggest the iPhone 18 Pro could start at $1,399 or higher marking a $200–$300 jump over the iPhone 17 Pro with Pro Max and Ultra models potentially far more expensive.
- Higher memory and camera costs are key drivers as Cook highlighted DRAM shortages.
Apple has indicated that future products could become more expensive as the company deals with ongoing memory supply challenges. The development was revealed by Apple CEO Tim Cook during a recent interview with The Wall Street Journal, where he pointed to rising RAM costs as a key factor behind potential price increases.
According to the report, Cook described the expected hikes as “unavoidable” due to the continued shortage of memory components.
Apple Confirms Significant iPhone Price Increases Ahead
The WSJ story reads – “Unfortunately, price increases are unavoidable,” he said. “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.”
“Cook declined to offer details on the timing or scale of the planned price increases, nor which products will be affected. Apple’s next major product launch is likely to be in September when it releases the iPhone 18 lineup expected to include a new foldable iPhone. Price increases, especially for Macs and iPads, could come sooner. Apple raised the starting price of the Mac Mini last month in between launch events.”
The Wall Street Journal noted that Apple recently adjusted the pricing structure of its Mac mini desktop by removing the entry-level storage option. While the price of the higher-storage version remained unchanged, customers effectively had to pay more for the base model.
However, future price changes may be more direct. Based on Cook’s comments, Apple appears to be considering broader hardware price increases rather than relying solely on configuration changes.
The report further adds – “Cook said prices for memory and storage are both issues for the company, though he focused on the DRAM market in particular, calling out the increased allocations going to so-called high-bandwidth memory that is used for AI servers.”
“There’s less supply at a time when consumers want devices and the memory guys are passing along huge price increases,” said Cook. “We definitely need memory pricing and supply to return to reasonable levels for consumer products. That’s the bottom line.”
The report comes as Cook prepares to transition out of the CEO role. On September 1, Apple executive John Ternus is set to become the company’s new CEO, while Cook will move into the position of Executive Chairman of the Board.
iPhone 18 Pro Could See a Sharp Price Jump
The Wall Street Journal attempted to estimate the potential pricing of the upcoming iPhone 18 Pro based on expected component costs and data from research firm TechInsights.
Discussing the impact of rising costs, the publication wrote – “Apple isn’t immune to soaring chip prices, Chief Executive Tim Cook told The Wall Street Journal. When asked which devices would be getting price increases and when, Cook responded, “We’re still working through that.” We’re likely to find out more this September, when the next iPhone and other devices are expected to arrive. So for now, we decided to make an educated guess at how much more Apple hardware will cost, using the anticipated but as yet unannounced iPhone 18 Pro.”
Based on its analysis, the publication estimates that the iPhone 18 Pro could start at a minimum of $1,299. However, a starting price of $1,399 or even higher is considered more likely.
If accurate, that would represent a price increase of $200 to $300 or more compared to the iPhone 17 Pro. Higher storage variants and premium models such as the iPhone 18 Pro Max and the rumoured iPhone Ultra could become even more expensive.
Rising Component Costs Driving Estimates
The publication’s projections are based on anticipated increases in RAM, storage, and camera component costs while maintaining Apple’s typical profit margins.
The report states – “While Apple doesn’t report the gross profit margins on individual products, the TechInsights research suggests the margin on the $1,099 iPhone 17 Pro was a tidy 47%. To maintain that profit margin for the iPhone 18 Pro, based on estimated costs, the company would have to charge $1,371. Because the company likes standardized pricing, the starting price tag would more likely be $1,299, yielding a 44% gross profit. And this calculation doesn’t account for a potential new camera system that will also cost Apple about 50% more than previous models, according to supply chain analyst Ming-Chi Kuo. In that case, following the same math, Apple could set the starting price of the iPhone 18 Pro at $1,399—or higher.”
The report further notes that the iPhone 18 Pro is expected to introduce major camera upgrades, which could contribute significantly to higher production costs. If Apple maintains the current pricing gap between the Pro and Pro Max models, the iPhone 18 Pro Max could launch at least $100 above the Pro variant. Under such circumstances, the anticipated iPhone Ultra could approach a starting price of around $2,000.
Apple’s comments on future price increases come after the launch of the MacBook Neo, which the company positions as its most affordable Mac notebook. The entry-level model ships with 8GB of RAM, less memory than what is available on several modern iPhones, iPads, and Mac devices.
FAQs
Q1. Why is Apple planning to raise iPhone prices?
Answer. Apple CEO Tim Cook confirmed that rising costs of memory components, especially DRAM, are making price hikes “unavoidable.” Supply shortages and higher allocations to AI servers have driven up costs, impacting consumer devices.
Q2. How much could the iPhone 18 Pro cost?
Answer. Analysts estimate the iPhone 18 Pro could start at $1,399 or higher, representing a $200–$300 increase over the iPhone 17 Pro. Premium models like the Pro Max and the rumored Ultra could be even more expensive.
Q3. Which Apple products might see price increases first?
Answer. While Cook did not specify exact timing, Macs and iPads could be affected sooner. Apple already raised the starting price of the Mac Mini by removing the entry-level storage option, effectively increasing the base cost.
