Tim Cook's Confirmation

In an exclusive interview published on June 17, 2026, Tim Cook told The Wall Street Journal that Apple can no longer absorb the rising costs of memory and storage chips. "Unfortunately, price increases are unavoidable," he said. "We're doing our best to mitigate the huge increases that are being passed to us, and we've been trying to shield our customers from the increases, but the situation has become unsustainable" . Cook did not specify which products or exact price points, but the statement was unequivocal: higher prices are coming .

Root Cause: Why Memory Chip Costs Are Soaring

The crisis is driven by an insatiable demand from AI infrastructure. AI data centers are projected to consume an estimated 70% of global DRAM production in 2026, diverting supply away from consumer electronics like smartphones, PCs, and tablets . The three dominant memory manufacturers—Samsung, SK Hynix, and Micron—have shifted their production capacity to high-bandwidth memory (HBM) used in AI servers, leaving fewer DRAM and NAND chips available for consumer devices .

This is a structural, not cyclical, shortage. Unlike the 2021 pandemic disruption, which was a temporary supply shock, this shortage is the direct result of a permanent demand shift driven by AI buildout . According to industry sources, memory makers will only meet roughly 60% of DRAM demand through 2027, locking in years of price pressure .

Expected Timing: When Will Prices Go Up?

Cook did not announce a specific date, but the price hikes are described as imminent. Analysts expect the first increases to take effect within days to weeks, potentially coinciding with Apple's back-to-school promotion in late June or July . The most significant impact is expected with the launch of the iPhone 18 series in September 2026 . It is likely that other products, including iPads, Macs, and the 'feeder' lineup (iPhone E, MacBook Neo, iPad Air), will also see price increases .

Specific Price Estimates for iPhone 18 Pro

Cook did not name specific products or prices. All estimates below are from analysts and The Wall Street Journal based on component cost calculations .

MacRumors, citing the same WSJ analysis, reported that $1,399 is the more likely starting price, which would be a $200–$300 increase over the current iPhone 17 Pro .

Broader Industry Impact: The Smartphone Market Crash

The memory crisis is not just Apple's problem. Research firm IDC forecasts global smartphone shipments will contract ~12.9% in 2026—the biggest single-year decline in over a decade—dropping to roughly 1.1 billion units . Counterpoint Research predicts a similar 12% decline , while Omdia projects a more conservative 7% drop . TrendForce sees a 10% decline, with a worst-case scenario of 15% . Smaller handset makers are being hit hardest as they struggle to secure supply, while Apple's scale provides some (but not total) insulation .

How Long Will the Shortage Last? Expert Forecasts

The consensus across the industry is sobering: this is a multiyear shortage with no near-term relief.

The shortage is distinct from previous cycles because new fabrication plants (fabs) take years to build and equip. Until new capacity comes online—likely in 2027 or 2028—the supply squeeze will persist .

Bottom Line

Tim Cook has confirmed that Apple will raise prices across its product lineup, driven by an AI-fueled memory chip shortage that is unlike anything the industry has seen. The iPhone 18 Pro is widely expected to start at $1,299–$1,399 at its September 2026 launch. The broader smartphone market faces a contraction of up to 13% in 2026, and most analysts agree that meaningful relief will not arrive until late 2027 or more likely 2028 .

Tim Cook's Confirmation

In an exclusive interview published on June 17, 2026, Tim Cook told The Wall Street Journal that Apple can no longer absorb the rising costs of memory and storage chips. "Unfortunately, price increases are unavoidable," he said. "We're doing our best to mitigate the huge increases that are being passed to us, and we've been trying to shield our customers from the increases, but the situation has become unsustainable" . Cook did not specify which products or exact price points, but the statement was unequivocal: higher prices are coming .

Root Cause: Why Memory Chip Costs Are Soaring

The crisis is driven by an insatiable demand from AI infrastructure. AI data centers are projected to consume an estimated 70% of global DRAM production in 2026, diverting supply away from consumer electronics like smartphones, PCs, and tablets . The three dominant memory manufacturers—Samsung, SK Hynix, and Micron—have shifted their production capacity to high-bandwidth memory (HBM) used in AI servers, leaving fewer DRAM and NAND chips available for consumer devices .

This is a structural, not cyclical, shortage. Unlike the 2021 pandemic disruption, which was a temporary supply shock, this shortage is the direct result of a permanent demand shift driven by AI buildout . According to industry sources, memory makers will only meet roughly 60% of DRAM demand through 2027, locking in years of price pressure .

Expected Timing: When Will Prices Go Up?

Cook did not announce a specific date, but the price hikes are described as imminent. Analysts expect the first increases to take effect within days to weeks, potentially coinciding with Apple's back-to-school promotion in late June or July . The most significant impact is expected with the launch of the iPhone 18 series in September 2026 . It is likely that other products, including iPads, Macs, and the 'feeder' lineup (iPhone E, MacBook Neo, iPad Air), will also see price increases .

Specific Price Estimates for iPhone 18 Pro

Cook did not name specific products or prices. All estimates below are from analysts and The Wall Street Journal based on component cost calculations .

MacRumors, citing the same WSJ analysis, reported that $1,399 is the more likely starting price, which would be a $200–$300 increase over the current iPhone 17 Pro .

Broader Industry Impact: The Smartphone Market Crash

The memory crisis is not just Apple's problem. Research firm IDC forecasts global smartphone shipments will contract ~12.9% in 2026—the biggest single-year decline in over a decade—dropping to roughly 1.1 billion units . Counterpoint Research predicts a similar 12% decline , while Omdia projects a more conservative 7% drop . TrendForce sees a 10% decline, with a worst-case scenario of 15% . Smaller handset makers are being hit hardest as they struggle to secure supply, while Apple's scale provides some (but not total) insulation .

How Long Will the Shortage Last? Expert Forecasts

The consensus across the industry is sobering: this is a multiyear shortage with no near-term relief.

The shortage is distinct from previous cycles because new fabrication plants (fabs) take years to build and equip. Until new capacity comes online—likely in 2027 or 2028—the supply squeeze will persist .

Bottom Line

Tim Cook has confirmed that Apple will raise prices across its product lineup, driven by an AI-fueled memory chip shortage that is unlike anything the industry has seen. The iPhone 18 Pro is widely expected to start at $1,299–$1,399 at its September 2026 launch. The broader smartphone market faces a contraction of up to 13% in 2026, and most analysts agree that meaningful relief will not arrive until late 2027 or more likely 2028 .