Tim Cook confirms Apple price increases are unavoidable amid memory chip shortage

Apple CEO Tim Cook has confirmed the company will raise hardware prices, telling The Wall Street Journal that the situation caused by a global memory and storage chip shortage has become 'unsustainable.' The iPhone 18 Pro — expected in September 2026 — could start at $1,299, according to The Wall Street Journal's estimates, a $200 increase over the iPhone 17 Pro. For UAE buyers, that signals the flagship will likely launch well above AED 4,700 at current conversion rates.

Why is Apple raising prices in 2026?

According to Tim Cook's interview with The Wall Street Journal, AI companies have driven a global shortage of memory and storage chips by spending heavily on data centre infrastructure. PC and smartphone makers — including Dell, HP, Lenovo, and Samsung — have already passed those higher component costs on to customers.

Apple was the last major hardware company holding the line. That's now over.

"Unfortunately, price increases are unavoidable," Cook 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 first flagged the issue during an earnings call in April 2026. Weeks later, Apple quietly acted: the Mac mini lost its 256GB base configuration and its starting price jumped from $599 to $799 — a $200 increase with no announcement.

What products will be affected?

The Wall Street Journal reports that iPads and Macs will see price hikes first, ahead of the iPhone 18 series. The outlet estimates the iPhone 18 Pro's starting price could rise by $200, putting the base model at $1,299.

Cook did not confirm specific figures or timelines for individual products. What we don't know: which iPad models are affected, exact price increases, or whether Apple will adjust storage tiers to soften the impact.

For context on how Apple's chip strategy connects to these cost pressures, the Apple Silicon on-device AI roadmap shows how dependent the company has become on cutting-edge memory-intensive chips.

• Mac mini: Starting price up from $599 to $799; 256GB model discontinued
• iPad: Price hikes expected, exact models unconfirmed
• iPhone 18 Pro: Estimated $1,299 starting price (up from $1,099); launches September 2026

What this means for Apple buyers

Apple held prices on its iPhone lineup for several years, even as rivals adjusted theirs. That discipline built consumer trust — and set expectations. Breaking that pattern mid-leadership transition is notable timing.

This signals Apple is prioritising margin protection over its reputation as a price-stable premium brand. For consumers, it means the cost of staying in the Apple ecosystem just went up, and there's no indication the increases stop with one product cycle.

Samsung and other Android manufacturers already absorbed similar chip costs and passed them on. Apple's customers — many of whom stayed loyal partly due to price predictability — now face the same reality.

Cook is stepping down in September 2026, with hardware chief John Ternus set to take over as CEO. The iPhone 18 launch will be among Ternus's first major product moments in the top role — and he'll be introducing it alongside the biggest Apple price hike in recent memory.

Frequently Asked Questions

Why is Apple raising prices in 2026?

Apple is raising prices because of a global shortage of memory and storage chips, driven by heavy spending from AI companies on data centre infrastructure. CEO Tim Cook told <em>The Wall Street Journal</em> that Apple can no longer absorb the rising component costs being passed on by suppliers.

How much will the iPhone 18 Pro cost?

<em>The Wall Street Journal</em> estimates the iPhone 18 Pro will start at $1,299 — a $200 increase over the iPhone 17 Pro's $1,099 starting price. Apple has not officially confirmed iPhone 18 pricing. The phone is expected in September 2026.

What is the iPhone 18 Pro price in the UAE?

Apple has not announced UAE pricing for the iPhone 18 series. Based on the estimated US starting price of $1,299, UAE buyers should expect a price above AED 4,700 — potentially closer to AED 5,000 — depending on Apple's regional pricing decisions at launch.

Which Apple products are getting more expensive?

The Mac mini has already seen its starting price rise from $599 to $799, with the 256GB model discontinued. iPads and Macs are expected to see further increases before the iPhone 18 launch. Specific iPad models affected have not been confirmed by Apple.

Is Tim Cook leaving Apple?

Yes. Tim Cook is stepping down as Apple CEO in September 2026. He will be replaced by John Ternus, Apple's current hardware chief. Ternus will lead the company through the iPhone 18 launch — his first major product cycle as CEO.

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