– Memory chip costs are rising sharply due to AI demand, making Apple price increases “unavoidable.”
– DRAM and NAND prices are projected to rise over 300% by Q3 2026.
– High-memory products like iPhones and MacBooks will be impacted, while low-memory items like AirPods will not.
– Consumers should consider buying devices now before prices climb further.
In an exclusive interview with the Wall Street Journal, Tim Cook, CEO of Apple, warns that “Unfortunately, price increases are unavoidable” due to skyrocketing memory chip costs. Both solid state storage and RAM prices have risen dramatically during the past year, primarily driven by huge demand from AI data centers. Unlike conventional apps, such as Final Cut Pro, that can run with just 8 GB of RAM, AI large language models (LLM) need 48 GB or more to load and run well on consumer computers, and even more in data centers for commercial use.
Memory Prices Going Through the Roof
As a result, Micron has discontinued production of consumer memory products to focus on supplying commercial customers, while products from PlayStation 5 consoles to Samsung LPDDR5X DRAM continue to see 100% price increases or greater. A graph of price changes in DRAM and NAND pricing since 2023 by TechInsights in the article estimates both will have increased by over 300% by the third quarter of 2026. Given that Apple’s top-of-the-line 2TB iPhone 17 Pro Max is currently priced at $1,999, one can imagine the upcoming iPhone 18 Pro Max smartphone or iPhone Ultra folding phone topping the $2k mark.
What This Means For Your Wallet
Cook has not revealed specifics or timings for the planned price increases, nor what effect Apple’s own Siri AI has on its product pricing. The lack of transparency is worrying for consumers who are already facing higher costs for everything from groceries to gas. Parents wanting to equip their children before school starts this fall might want to buy iPhones and MacBooks early as demand for memory is expected to outstrip supply for the next several years.
Products that use few memory chips or none at all, like the AirPods 4 with ANC, will likely not be impacted. This means you can still get a good deal on accessories while the larger ticket items become increasingly expensive. The memory shortage is showing no signs of letting up, and Apple fans should brace for sticker shock in the coming quarters. Whether it’s a new MacBook Pro or the latest iPhone, prepare to pay more for the same amount of storage you got last year.