- Apple CEO Tim Cook confirmed unavoidable price increases for most products due to soaring memory chip costs driven by AI infrastructure demand.
- Prices could rise significantly, with the iPhone 18 Pro potentially jumping over $200 to maintain margins, affecting upcoming fall launches.
- While Apple stock has stagnated, recent deals like one with Intel help it capitalize on chip industry growth, with some analysts maintaining buy ratings.
Apple CEO Tim Cook told The Wall Street Journal this week that rising development costs will force price hikes across most products. Cook stated that “price increases are unavoidable” as the global AI buildout squeezes the supply of crucial memory chips.
However, the company has tried to mitigate these massive cost increases, which have risen between 80% and 200%. Consequently, maintaining its current price range has become unsustainable for Apple. Specific increases weren’t disclosed, but the iPhone 18 Pro may need to jump over $200 relative to its predecessor.
Meanwhile, the effects are already echoing in market circles, inadvertently affecting Apple stock. AAPL has stagnated around $297 recently, slowing its 9% climb in 2026. Some Wall Street firms have changed their tone, with Phillip Securities analyst Helena Wang maintaining a ‘hold’ rating and warning of further potential slumps.
Fortunately, Apple‘s leaning into the chip market has helped it stay afloat. The iPhone maker reportedly agreed to a deal where Intel would manufacture chips for it. Wedbush and Bank of America reiterated buy ratings Thursday, suggesting AAPL still has potential despite the looming price hikes.
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