Apple Chief Executive Tim Cook has indicated that price increases for the company’s products are inevitable in the near future, attributing the rise to escalating costs of memory chips. Speaking to the Wall Street Journal this week, Cook described the current supply situation for these essential components as “unsustainable,” though he did not specify when the new prices would be implemented or confirm if the forthcoming iPhone 18 would be included in the adjustments.

The shortage and cost pressures appear to stem from multiple factors. Intel, a leading US chip manufacturer, has raised prices citing growing demand for artificial intelligence technologies and disruptions related to the ongoing conflict in Iran, which has affected global helium supplies—a critical element in chip production.

Industry analysts have projected significant cost impacts on smartphones broadly. Research firm Omdia forecasts that the average selling price of smartphones worldwide could increase by as much as 20 percent this year, reaching record highs. Within this context, new Apple iPhones may see price tags rise by as much as $150 (approximately £115) compared to the previous iPhone 17 models.

The price increases reflect broader trends in the semiconductor market, where constrained supply and geopolitical tensions are combining to drive up component costs. While Apple has not yet provided a detailed timeline for the price adjustments or confirmed which products will be most affected, the company’s acknowledgment signals potential changes that may impact consumers when new product lines are launched later in 2026.