What Apple’s memory crisis and price hikes really mean
Apple’s current memory crisis refers to a surge in the cost and scarcity of memory and storage chips, driven by intense demand from AI data centers, which is now forcing the company to raise prices across iPhones, iPads, Macs, and other devices to protect its margins and maintain supply. In an interview with The Wall Street Journal, Tim Cook said “price increases are unavoidable” as memory suppliers push through “huge price increases” that Apple can no longer absorb. This marks a turning point: Apple, long known for holding base prices steady while improving specs, is preparing a broad Apple price hike instead of quiet cost-cutting. The move comes after other PC and phone makers have already raised prices in response to the memory chip shortage, signaling a structural shift rather than a brief bump.
How AI spending turned memory and storage into Apple’s biggest headache
At the core of the storage cost crisis is the battle for the same pool of DRAM and flash chips. AI companies are buying huge volumes of high-performance memory and storage for data centers, leaving consumer device makers to fight over limited leftovers at higher prices. Cook describes “less supply at a time when consumers want devices,” a mismatch that pushes costs sharply upward. TechInsights estimates the iPhone 18 Pro could need an increase of around USD 270 (approx. RM1,240) per unit to keep Apple’s margins intact, highlighting how severe the pressure has become. Memory appears to be the sharper pain point than storage, but both components are affected. Apple plans to use its large cash reserves to secure supply, yet Cook compares the situation to a once-in-a-lifetime disaster, suggesting supply relief will not come quickly.
Where consumers will feel the iPhone price increase first
For buyers, the most immediate effect will be higher entry prices across multiple product lines, with iPads and Macs expected to move first. According to PCMag’s report on the Journal interview, the starting price of Apple’s flagship iPhone 18 Pro could rise by USD 200 (approx. RM920), from USD 1,099 (approx. RM5,050) on the iPhone 17 Pro to USD 1,299 (approx. RM5,970). That is on top of earlier changes, such as dropping the 256GB Mac mini variant and raising its starting price. While Apple has not published final figures for every device, Cook’s language suggests that holding the line on pricing is no longer viable. For consumers, that means budgeting for an iPhone price increase and expecting fewer “quiet” spec bumps at old price points, especially for models with more RAM and storage.
Will Android brands and PC makers follow Apple’s lead?
The memory chip shortage is not an Apple-only problem. PCMag notes that Dell, HP, Lenovo and Samsung have already increased hardware prices in response to the same supply crunch. Until now, Apple stood out by absorbing more of the cost, but Cook’s admission that the situation is “unsustainable” removes that buffer. As AI builds out ever-larger data centers, memory suppliers can keep charging premium prices, pushing device makers to pass costs through. That means Android phone and tablet brands are unlikely to undercut Apple by large margins without sacrificing profit or cutting memory configurations. Instead of a single-company Apple price hike, the entire smartphone and PC market may move up a notch in starting prices, with consumers paying more for the same storage tiers across ecosystems.
