Apple is planning to increase the prices of some of its products, with Macs and iPads likely being among the first to see price hikes. This move is a direct response to the escalating costs of RAM, as the company has been absorbing "huge increases" in memory expenses for its iPhones, iPads, and Macs, a situation CEO Tim Cook described as unsustainable.
While specific timing for these price adjustments was not provided by Cook, The Wall Street Journal suggests that Mac and iPad prices could go up in the near term. iPhone prices are not expected to be affected until the launch of the iPhone 18 Pro and a foldable iPhone in September. Apple has already subtly increased prices by phasing out more affordable base models, such as with the Mac mini, which now starts at $799 instead of $599, offering 512GB SSD instead of 256GB.
The surge in memory chip and NAND flash storage prices is attributed to chip manufacturers struggling to meet demand from both device makers and AI companies. Chip makers are prioritizing higher-margin contracts with AI firms, leading to a reduced supply for consumer electronics and consequently higher prices. This trend has been described by Cook as an unprecedented "hundred-year flood."
In February, rumors indicated that Apple had agreed to a 100% price hike on Samsung memory chips to secure supply for the iPhone 17 models, and even then, second-quarter iPhone production faced supply issues. Analysts like Morgan Stanley's Kim predict a two-tiered memory market, with significant shortfalls for PC and smartphone makers in 2027, potentially forcing companies to raise prices, cut specifications, delay launches, or accept lower profits. The memory chip market is projected to grow to $890 billion by the end of this year, up from $220 billion in 2025, due to AI demand.
