The rising cost of RAM and storage has become a significant issue for the tech industry. Apple has managed to insulate customers from these increases for the time being, but a recent report from the Wall Street Journal indicates that this protective strategy may be approaching its limits.
Speaking with the publication, Apple CEO Tim Cook acknowledged that price hikes are now “unavoidable” due to the escalating costs of DRAM memory and NAND storage. This surge is largely driven by the booming artificial intelligence (AI) sector, where cloud providers and AI companies are in fierce competition for the same chips used in consumer devices. Thus far, Apple has absorbed these increases, but Cook’s comments suggest a shift is imminent.
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Apple Held the Line Longer Than Most Rivals
Apple’s ability to avoid significant price hikes is no accident. The company began 2026 with pre-secured inventory before memory prices accelerated and leveraged its scale to negotiate supply agreements that many competitors could not match. Earlier this year, Apple adopted product configuration changes, such as eliminating lower-capacity options from some Macs, instead of directly increasing retail prices.
However, the situation is becoming increasingly complicated as Apple gears up for a new generation of AI-focused products. Following WWDC, the company has started testing its next-generation Siri experience and more extensive Apple Intelligence upgrades. These enhanced features demand greater memory allocations, explaining why some of Apple’s most advanced Siri capabilities are currently limited to devices with higher RAM configurations.
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Additionally, Apple is anticipated to launch new Macs and its highly speculated foldable iPhone later this year, both of which may require larger memory allocations to accommodate increasingly capable on-device AI features. Reports suggest that the iPhone 18 Pro could debut with a starting price around $1,399 this fall, signifying a $300 increase compared to its predecessor.
AI is Forcing Apple’s Hand
Cook noted that Apple is prepared to use its financial resources to secure memory supply, but he dismissed the idea of constructing Apple-owned memory or storage manufacturing facilities. “We can’t do everything. We know what we’re good at,” Cook stated. Despite Apple’s considerable influence over suppliers, this position leaves the company vulnerable to the same market forces that are affecting the broader industry.
With memory suppliers increasingly prioritizing infrastructure the needs of AI customers, and analysts predicting that shortages may persist into 2027, Apple’s long-standing practice of absorbing these costs might soon come to an end.
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