Apple said it is considering raising product prices as memory chip prices have surged amid the artificial intelligence (AI) boom. Industry observers expect the iPhone 18 series, set to be unveiled in September, could be the first target.
In an interview with The Wall Street Journal (WSJ) on Monday, Apple Chief Executive Tim Cook said, "Unfortunately, price increases are inevitable." He added, "We've done our best to absorb the enormous cost increases being passed on to us, but the situation has reached an unsustainable level."
Cook did not disclose specific details on the timing, scale, or affected lineup of the price increases. However, the industry expects the iPhone 18 series, scheduled to be unveiled in September, as well as the Mac and iPad, to be affected. Apple already raised the starting price of the Mac Mini last month.
Market research firm TechInsights analyzed that Apple would need to raise the price of its next iPhone Pro model by about $270 (approximately 410,000 won) to maintain its current profitability. The WSJ reported that if applied, the price of the iPhone 18 Pro could soar to around $1,299 (approximately 1.98 million won).
For the Galaxy Z Flip7 and Fold7, launched last July, the 512GB models each rose by 94,600 won, priced at 1,738,000 won from 1,643,400 won, respectively. The Fold7 1TB model rose by 193,600 won, from 2,933,700 won to 3,127,300 won.
The Galaxy S25 Edge 512GB model, which hit the market last May, was also raised by 110,000 won, from 1,639,000 won to 1,749,000 won.
Behind Apple's consideration of price increases lies a memory supply-demand imbalance caused by the explosive growth of the AI industry.
As global big tech companies including Google, Microsoft, Meta, and Amazon aggressively increase their AI data center investments, prices of DRAM and NAND have risen about fourfold since last year. The industry forecasts that strength in both products will continue through 2027.
Cook particularly pointed out that the expansion of high-bandwidth memory (HBM) production for AI servers is causing a shortage of consumer memory.
"Consumers still want devices, but memory makers are demanding significantly higher prices," he said. "Prices and supply of consumer products need to return to a reasonable level."
The global DRAM market is currently led by Samsung Electronics, SK hynix, and Micron. Morgan Stanley forecast that consumer memory supply could fall short of demand by up to 15% due to the impact of expanded AI memory production.
China also has major players in the memory and storage sectors, but U.S. national security regulations may require separate approval for U.S. companies to do business with them. Asked about the need to ease such regulations, Cook said, "We need to examine all possibilities."
He also said Apple is willing to use its cash assets to expand memory supply. However, he made clear that the company has no plans to build its own memory or storage factories.
"We're willing to use our financial capacity to be part of the solution," he said. "We can't do everything. We know what we're good at."
Apple is one of the world's largest customers, purchasing tens of billions of dollars worth of memory and storage every year. In the past, it wielded pricing power by leveraging its overwhelming purchasing power to drive competition among suppliers, but the situation has changed as the AI investment race has intensified. Analysts say that with big tech companies recently entering the memory market backed by massive funds, even Apple has found it difficult to secure the volumes it wants in time.
"I've worked in the supply chain field for more than 40 years, but I've never seen a surge in raw material prices like the past six months," Cook said. "This is a once-in-a-century flood."
Meanwhile, the move to raise smartphone prices is not Apple's problem alone. Samsung Electronics also raised the retail prices of some high-capacity models due to the impact of rising global chipset prices and exchange rate fluctuations.
The 512GB models of the Galaxy Z Flip7 and Fold7, launched last July, were sold at 1,738,000 won each, up 94,600 won from before. The price of the Fold7 1TB model was raised by 193,600 won, from 2,933,700 won to 3,127,300 won.
The Galaxy S25 Edge 512GB model, launched last May, was also raised by 110,000 won, from 1,639,000 won to 1,749,000 won.
