Tim Cook Confirms Apple Price Hikes Coming, iPhones Could Rise by More Than $200

Apple CEO Tim Cook told The Wall Street Journal that price increases across Apple's product lineup are unavoidable this year because memory costs are continuing to rise.

The company hasn't decided yet which devices will be affected or the extent of the increase. The Wall Street Journal estimates that base-model iPhones could see prices go up by more than $200.

Cook described the current situation with memory prices as the worst he has seen in his 40 years working in electronics, calling it a "hundred-year flood."

Why Apple Is Raising Prices and Where They’re Likely to Rise First

Last year, AI data centers began using most of the available DRAM and NAND production capacity, leading to supply issues that impacted consumer hardware.

Smartphone shipments hit historic lows, game consoles are nearing the $1,000 price point, and PC manufacturers are reviving older hardware to keep products available. Microsoft has stated it now spends four times as much on memory compared to late last year.

Apple's supply chain advantages have so far protected its products from most of these pressures. The company recently launched a $599 MacBook that caused significant attention in the laptop market, and it is planning to double the production of the MacBook Neo.

Apple CEO Tim Cook acknowledged that the company has been working to reduce the impact of rising memory costs while maintaining profit margins, but he also noted that the current situation has become unsustainable.

The full extent of the changes is likely to become public in September when Apple announces the iPhone 18 and the foldable iPhone Ultra. Prices for Mac and iPad models may increase earlier.

The hardware lineup for fall 2026 was already expected to be costly even before the memory shortage. Industry estimates suggest that the foldable iPhone Ultra will start at no less than $2,000.

The standard iPhone 18 is not expected to be released until 2027, so this year's lineup is likely to include the iPhone 18 Pro and the Ultra model.

An Ultra-tier MacBook with a touchscreen and Apple's next-generation M6 processor is also anticipated this year.

What This Round of Apple Price Hikes Means for Buyers

Users considering an Apple device purchase in 2026 should keep a few factors in mind. Current models priced at this time are likely to stay available only until stock runs out at retail stores, ahead of the September product cycle.

Trade-in values for older iPhones and Macs might increase as overall device prices go up, which could partially offset the cost hikes for users upgrading.

Refurbished and certified pre-owned Apple devices could become more appealing as new device prices increase. Cellular carriers’ financing options and trade-in promotions may also help cushion some of the price rise, depending on regional offers.

Users planning a major Apple purchase might find it beneficial to buy before the September announcement. Those not in urgent need of a new device may prefer to wait until the full pricing details are released to see if the increases are significant enough to influence their decision.

The AI Memory Supercycle and Its Impact on Devices

Industry analysts expect memory costs to stay high beyond 2027. This differs from typical memory market patterns, which usually result from supply shortages rather than persistent demand from a single end-use segment.

The ongoing buildout of AI infrastructure and the reallocation of fabrication capacity have led to what analysts are now calling a memory supercycle.

The smartphone market is projected to shrink by 15 percent in 2026, according to CCS Insight. Similar pressures are affecting the PC and console markets. For example, game console prices are already rising, and the Steam Deck recently experienced a 50 percent price increase.

Apple has not announced when the upcoming price changes will start or which products will be affected first.