Tim Cook warns that rising RAM costs are unsustainable, leading to upcoming price increases.

Apple is gearing up to increase prices due to the ongoing memory shortage. In a recent interview, CEO Tim Cook stated that “price increases are unavoidable,” explaining that the company is doing its best to manage the significant cost hikes being passed on to them. However, he noted that the current situation has become unsustainable.

While Cook did not specify when the price hikes will occur or which products will be impacted, Apple has already made some moves, such as discontinuing the Mac Studio with 512GB of RAM in March and raising the starting price of the Mac Mini to $799 after eliminating the $599 option. Analyst Tim Culpan has also indicated that Apple might phase out the base configuration of the MacBook Neo, while retaining the $699 model with 512GB of storage.

The demand for memory from AI companies is straining suppliers, leading to skyrocketing RAM and storage prices, which in turn is affecting game consoles, laptops, and other devices. Cook remarked, “There’s less supply at a time when consumers want devices and the memory guys are passing along huge price increases.” He emphasized the need for memory pricing and supply to stabilize for consumer products.

As Apple prepares to unveil its latest iPhone lineup later this year, the extent of the memory shortage’s impact on pricing remains uncertain. Estimates suggest that the upcoming iPhone 18 Pro could retail for $1,299, a notable increase from the $1,099 price tag of the iPhone 17 Pro.