Why Apple’s iPhone Prices Are Set to Rise as Memory Costs Surge

What the coming iPhone price increase actually means

The coming iPhone price increase refers to Apple passing steeply rising memory and component costs on to consumers, causing base models and high-end devices to become significantly more expensive than earlier generations. It describes a shift from Apple quietly absorbing higher bills of materials to openly adjusting retail prices across iPhones, Macs and iPads in response to an industry-wide spike in DRAM and NAND prices driven by AI data center demand. In an interview with The Wall Street Journal, CEO Tim Cook confirmed that an Apple price hike is now “unavoidable” as memory chip costs continue to climb. The report says the company is still deciding which devices will move first, but base-model iPhones could see increases of more than USD 200 (approx. RM920). For buyers, that means future models may deliver more performance and storage, but at a noticeably higher upfront cost.

How AI and memory chip costs pushed Apple to the tipping point

Apple’s move is part of a wider wave of smartphone component inflation. AI data centers are now soaking up most DRAM and NAND production, pushing memory chip costs to what Cook described as the worst price swing he has seen in four decades. According to TechSpot, Microsoft says it now pays four times as much for memory as it did late last year, and memory has become the largest part of the Nothing phone’s bill of materials. This scramble for chips has made PCs with DDR5 RAM scarce, squeezed the retail SSD market, and pushed game console prices towards the high end. Until now, Apple’s scale and supply chain influence let it shield customers, even launching a USD 599 (approx. RM2,760) MacBook that shook the laptop market. But with AI demand “outmuscling” even Apple, those buffers have reached their limit.

Which Apple products will get more expensive first

While the headline concern is the iPhone price increase, Apple is reportedly preparing to raise prices on Macs and iPads first. The Wall Street Journal report, cited by GSMArena, says these categories are expected to see adjustments before the rest of the lineup. That strategy allows Apple to respond to memory chip inflation while spreading the shock across product families. On the Mac side, questions center on how Apple can maintain aggressive entry prices like the recent USD 599 (approx. RM2,760) MacBook amid higher component costs, especially with an Ultra-tier touchscreen MacBook and next-generation M6 processor on the horizon. iPads are also likely candidates for early hikes given their heavy use of high-capacity storage. For buyers, this means that waiting for a refreshed Mac or iPad might also mean budgeting for a higher ticket price, even before new iPhones arrive.

When iPhone buyers should expect to pay more

Apple has not given a firm date for its iPhone price increase, but the timing clues are clear. TechSpot reports that the full impact will be visible when Apple unveils the iPhone 18 and a possible iPhone Ultra, with base models projected to rise by more than USD 200 (approx. RM920). GSMArena adds that the upcoming iPhone 18 Pro lineup is expected to cost more than the current iPhone 17 Pro series. Complicating matters, analysts believe only two new iPhones are planned for Apple’s fall launch: a foldable iPhone Ultra, likely starting at no less than USD 2,000 (approx. RM9,200), and the iPhone 18 Pro, while a standard iPhone 18 may not appear until a later cycle. With experts expecting elevated memory costs beyond 2027, buyers eyeing future iPhones should assume higher base prices are not a temporary blip.