Apple CEO Cook states price hikes unavoidable as chip costs surge (AAPL)

Apple (AAPL) CEO Tim Cook announced product price increases are "unavoidable" due to soaring memory and storage chip costs. Cook stated the company can no longer absorb these rising expenses, despite past efforts to protect consumers. Memory and storage chip prices have surged approximately fourfold since 2025, driven by intense demand from tech giants like Google, Microsoft, Meta, and Amazon for AI data centers. Cook noted the shift of High Bandwidth Memory (HBM) production to AI servers is squeezing consumer electronics supply. While Cook did not specify timing or products, analysts project the iPhone 18 Pro could see a $270 increase, potentially reaching $1,299. Apple, a major chip buyer, faces unprecedented supply challenges as AI customers secure capacity. Cook expressed willingness to use Apple's balance sheet to aid capacity expansion but ruled out building its own chip factories.