What Apple’s ‘Unavoidable’ iPhone Price Increase Really Means
Apple’s iPhone price increase refers to the officially confirmed rise in iPhone and other Apple hardware prices caused by soaring memory and storage chip costs, which the company says it can no longer absorb as part of an unprecedented DRAM crisis. In an interview with The Wall Street Journal, outgoing CEO Tim Cook said “price increases are unavoidable” as Apple faces steep hikes for DRAM and NAND components amid a global memory chip shortage. For years, Apple had absorbed these higher costs, but Cook now calls the situation “unsustainable,” signalling a clear shift in pricing strategy. This change ends Apple’s unique position as the last major hardware maker holding the line on device prices, and it sets the stage for more expensive iPhones, Macs, and iPads as component suppliers prioritize lucrative AI data center contracts over consumer electronics demand.
Inside the Memory Chip Shortage and the DRAM Crisis
The current memory chip shortage is being driven by exploding demand from AI data centers, which has turned into a full-blown DRAM crisis for consumer hardware makers. Big AI players are buying huge volumes of high-bandwidth memory, and suppliers such as Samsung, SK Hynix, and Micron are prioritizing those contracts. According to Gizmochina, prices for both DRAM and NAND have roughly quadrupled compared with last year, squeezing margins on devices that rely on large amounts of memory and storage. Cook has described the disruption as a “hundred-year flood,” underlining how unusual and severe the supply crunch is. Analysts expect this imbalance to last for years, with shortages potentially stretching into 2027. In this environment, Apple’s previous strategy of absorbing higher component costs has become impossible to maintain without cutting into product development and long-term investment.
How Much More You May Pay for iPhone 18 Pro
Apple has not published a new price list yet, but analysts and reporters have outlined what the iPhone price increase might look like for upcoming Pro models. The Wall Street Journal’s estimate, cited by PCMag, suggests the iPhone 18 Pro base model could rise by USD 200 (approx. RM920), pushing it from USD 1,099 (approx. RM5,060) for the iPhone 17 Pro to USD 1,299 (approx. RM5,980). Gizmochina notes that TechInsights analysts believe memory-driven costs could add as much as USD 270 (approx. RM1,240) to a future iPhone Pro model, depending on configuration and component contracts. These figures are not official Apple prices but give a sense of how deeply the DRAM crisis and memory chip shortage are biting. Consumers should expect Pro-tier devices, which use more RAM and storage, to feel the impact first and most sharply.
Why Macs and iPads Will Likely Get More Expensive First
While the iPhone price increase is attracting the headlines, Cook’s comments and subsequent reporting suggest Macs and iPads will see Apple’s first wave of price hikes. Both PCMag and The Wall Street Journal expect iPad and Mac ranges to be adjusted before the iPhone 18 Pro arrives. Apple has already provided an early example: it dropped the 256GB Mac mini configuration and raised the starting price from USD 599 (approx. RM2,760) to USD 799 (approx. RM3,680), underscoring how memory and storage tiers are being rethought. Macs in particular tend to ship with higher RAM and storage options, making them more exposed to DRAM and NAND cost spikes. As memory remains the most expensive upgrade on many Macs, buyers who need more RAM for work or creative tasks should be prepared for steeper upgrade premiums over the coming product cycles.
What Apple Users Should Do Now
With the Apple price hike now confirmed, current and prospective buyers need to adjust their timing and configuration choices. Anyone already planning to buy a Mac or iPad within the next year may want to move earlier, before broader price changes roll out. For iPhone users eyeing the iPhone 18 Pro, it makes sense to assume a higher entry price and budget for more expensive storage tiers, especially in a market shaped by a persistent memory chip shortage. Cook has hinted that Apple could use its strong balance sheet to secure more capacity, but going up against multi-year AI contracts will not quickly fix an “unsustainable” supply situation. The result is straightforward: expect fewer “quiet” upgrades in storage for the same price, more noticeable jumps between capacity tiers, and an end to the era of Apple quietly absorbing memory cost increases.
