The year 2026 has been a turbulent one for smartphone devices owing to the DRAM supply crisis that has led to a sharp spike, especially in Android devices. For the longest time, Apple devices were relatively unscathed, likely due to a more sharp-ended manufacturing capability of Apple. However, the DRAM shortage is finally catching up to Apple, with Tim Cook confirming that price hikes are coming.
The Apple CEO, who will make way for John Ternus in September, has recently told the Wall Street Journal that Apple is planning to raise prices across its product lineup to offset surging memory and storage chip costs.
Cook did not disclose when or by how much prices might rise, nor which products could be impacted. A surge in AI-driven demand for data centers has pushed consumer electronics companies into fierce competition for dwindling supplies of key components, driving prices sharply higher.
"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," Cook said.
Groups representing automakers, retailers, electronic firms and others had warned earlier this month that rising demand for memory chips could lead to dramatic price hikes in US consumer goods and disrupt supply chains.
Cook flagged the DRAM market in particular, noting that more supply is being diverted toward high-bandwidth memory used in AI servers, leaving less available for consumer devices.
"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," he said.
Cook indicated Apple is prepared to use its cash reserves to help boost memory supply, though he did not offer details, while clarifying that the company has no plans to build its own memory and storage factories.
ALSO READ: Apple iPhone Fold Launch May Be Delayed To 2027 — Check Expected Price, Specs
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
