Apple signals iPhone price hikes as cost of memory chips surges
The anticipated price increases could be reflected in the upcoming iPhone 18 series, which is expected to be unveiled in September, while other.
An iPhone. (Magnific)
Apple, the company behind the iPhone, iPad and Mac computers, plans to raise prices of its products in the coming months as soaring memory chip costs and supply shortages continue to squeeze technology manufacturers.
The anticipated price increases could be reflected in the upcoming iPhone 18 series, which is expected to be unveiled in September, while other electronics makers are also warning of similar adjustments.
According to Apple's outgoing Chief Executive Officer Tim Cook, rising costs in the semiconductor supply chain have left the company with limited options.
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Speaking to The Wall Street Journal (WSJ), Cook indicated that the technology giant can no longer fully absorb the higher costs associated with essential memory components used in smartphones, computers and other consumer electronics.
“We are doing our best to mitigate the huge increases that are being passed to us, and we have been trying to shield our customers from the increases, but the situation has become unsustainable,” Cook said.
Memory chips are a critical component in smartphones and other connected devices, but their prices have surged sharply amid growing demand from Artificial Intelligence applications.
Industry data shows that the price of RAM, traditionally one of the cheapest computer components, has more than doubled since October 2025 as chipmakers struggle to meet demand.
Cook attributed the pressure to a combination of constrained supply and rising consumer demand, noting that manufacturers are passing increased costs through the value chain.
“There is less supply at a time when consumers want devices, and the memory chips guys are passing along huge price increases.”
Market research firm Omdia expects the average selling price of smartphones globally to rise by about 20 per cent in 2026, reaching a record high.
The firm estimates that Apple's next-generation smartphones could cost up to $150 (Sh19,432.50) more than the current iPhone 17 models as the company upgrades specifications to support advanced Artificial Intelligence features.
The strain is being felt across the broader technology industry.
Taiwan Semiconductor Manufacturing Company (TSMC), the world's largest contract chipmaker, has indicated that it may raise prices as inflation increases production costs.
Samsung has also warned that memory chip shortages could push up the prices of electronic devices, while Sony recently increased the price of its PlayStation 5 console by $100 (Sh12,955) in the United States, and Nintendo has announced plans to raise the price of its Switch 2 console from September.
Despite the cost pressures, demand for Apple's products remains strong.
The iPhone 17 lineup has recorded robust sales since its launch last September, helping drive a 17 per cent increase in Apple device sales during the first quarter of 2026 compared to the same period last year.
Earlier this year, the company also removed the entry-level version of its Mac Mini desktop computer, effectively raising the starting price of the product by about $200 (Sh25,910).