https://9to5mac.com/2026/02/02/tim-cook-didnt-rule-out-price-rises-for-apple-products-and-heres-why/
Tim Cook Didn't Rule Out Price Increases for Apple Products, and Here's Why
Apple CEO Tim Cook dodged questions about how Apple would respond to rising memory costs during an earnings conference call on Thursday.
Whether Apple will absorb the rising costs itself or pass them on to consumers in the form of price increases is not an easy decision. And looking at the numbers, it becomes clear why Cook didn't want to rule out the latter possibility.
Tim Cook Doesn't Rule Out Price Increases
Several analysts who participated in the conference call asked how Apple would respond to the sharp rise in memory chip costs, with one pressing Cook for an answer on the possibility of price increases.
Q: Let's go back to the memory pricing issue. We understand that Apple has a variety of options to address this. Historically, Apple hasn't used pricing as a means (except for exchange rate fluctuations). But given the unprecedented changes in memory prices recently, are you willing to consider price increases as a card you can play?
A: I don't want to speculate on that.
Cook is known for his ambiguous answers to questions about the company's future plans. But if Apple had completely ruled out the possibility of price increases for new models this year, he would likely have wanted to make that clear.
Cost Increases Are Very Serious
Apple is known for its high profit margins and typically secures very competitive prices from component suppliers due to its market dominance.
However, the AI boom has led to unprecedented demand for RAM and flash storage used in AI servers, putting even Apple under pressure to absorb rising costs. According to analysts cited by The Wall Street Journal, these cost increases are likely to be significant.
"Apple is definitely feeling the pressure."
- Sravan Kundojjala, industry analyst at semiconductor research firm SemiAnalysis
"The rate of memory price increases is unprecedented."
- Mike Howard, analyst at TechInsights
TechInsights estimates that DRAM prices will quadruple by the end of this year compared to 2023, and NAND prices will rise more than threefold.
Howard estimated that the cost of the two types of memory going into the base iPhone 18, expected to launch this fall, could be $57 higher per unit compared to the base iPhone 17.
Considering that the starting price of the iPhone 17 is $799, this represents a significant portion of the manufacturing cost.
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