Tim Cook Says iPhone Price Hikes Are Unavoidable as the AI Memory Crunch Reaches Buyers

Tim Cook signaled in a June 17 interview with The Wall Street Journal that iPhone prices will rise as the AI memory crunch tightens supply. He described memory‑chip pricing as a ‘once‑in‑a‑century flood’ and said Apple tried to absorb costs but could no longer shield customers, leaving the fall iPhone lineup in play. TechInsights estimates the DRAM/NAND cost inside an iPhone 17 Pro at about $39 and $13, respectively, with the iPhone 18 Pro potentially at $145 and $51, implying a component cost rise toward $726 and a price increase near $270 to preserve margins. Morgan Stanley projects about 15% increases across smartphones and PCs in the U.S. this year. Apple plans to use its balance sheet to expand memory supply but will not build its own factories, while a new variable‑aperture camera could add roughly 50% more cost than the current system.