Apple to raise prices due to memory chip crunch

Apple plans to raise the prices of its products as the cost of the memory chips it uses has surged, the technology giant's boss has said.

Tim Cook, Apple's outgoing chief executive, told the Wall Street Journal (WSJ) that price increases were "unavoidable" as the situation around memory chips had become "unsustainable".

He did not say when prices would rise or which products would be affected. It is also unclear whether the price hikes will affect the iPhone 18, which is expected to be launched in September, the BBC reported.

Memory chips are essential components in smart devices like mobile phones, but the boom in artificial intelligence (AI) has driven up their prices in recent months.

Later, US President Donald Trump said that Apple had agreed to work with chipmaker Intel to make its chips in the US.

"I decided to help Intel because we need to design and build our Chips right here in America," he wrote in a post on his social media platform Truth Social.

The BBC has contacted Apple and Intel for comment.

In August last year, the Trump administration announced that the federal government would take a 10% stake in Intel.

Intel's shares rose more than 10% when US stock markets opened on Thursday.

Earlier this year, Samsung said that it expects memory chip supply shortages to make electronic devices more expensive.

In April, Sony raised the price of its PlayStation 5 consoles by £90 in the UK and $100 in the US as a result of "continued pressures in the global economic landscape".

Nintendo later said it would increase the price of its Switch 2 from September due to "changes in market conditions".

The iPhone 17 has been popular since the lineup was launched last September. Sales of Apple devices grew by 17% in the first three months of 2026 compared with the same period a year ago, helped by strong demand in China.

Apple removed the entry-level option of its Mac Mini compact computers, raising its starting price by about $200 (£150) earlier this year.