Apple is reportedly planning to raise prices for some of its products as memory and storage chip costs continue to increase. Apple CEO Tim Cook said the increases are becoming “unavoidable” as rising component costs put pressure on the company’s supply chain.
Apple has not confirmed which products will be affected, when prices will change, or how much prices may increase. However, the issue reflects a wider IT industry trend: AI demand, semiconductor supply pressure, inflation, and geopolitical disruption are increasing the cost of key technology components.
AI Demand Is Increasing Chip Pressure
Memory and storage chips are used in smartphones, laptops, desktops, servers, data centres, and enterprise IT systems. One affected area is DRAM, which stands for Dynamic Random-Access Memory. DRAM temporarily stores data that devices and systems need to access quickly while applications and workloads are running.
AI infrastructure requires large amounts of fast memory, especially data centers and AI servers. As more supply is allocated to high-bandwidth memory for AI workloads, companies such as Apple face tighter access and higher costs for the memory used in consumer and business devices.
Semiconductor Costs Are Rising Across the Supply Chain
The cost pressure is not limited to Apple. The wider semiconductor supply chain is also facing inflation, supply constraints, and production cost increases.
The BBC reported that Taiwan Semiconductor Manufacturing Company, better known as TSMC, would not rule out price increases as inflation raises its operating costs. TSMC manufactures some of the world’s most advanced chips designed by companies such as Apple, Nvidia, and AMD.
Reports also noted that the war in Iran has disrupted the global supply of helium, a gas used in semiconductor manufacturing. This adds another cost factor to an already tight chip market.
Higher Costs May Affect Devices and IT Budgets
Research firm Omdia expects the average selling price of smartphones globally to rise by around 20% in 2026 to an all-time high. Omdia’s smartphone market analyst Chiew Le Xuan also told the BBC that Apple’s new phones could cost up to US$150 more than the iPhone 17 models, as upgraded specifications are expected to support new AI features.
Omdia added that many smartphone brands have already raised prices, reduced promotions, or cut specifications to protect profit margins. This suggests that higher device pricing may not be a short-term spike, but part of a new pricing reality for the technology market.
For businesses, this may affect IT procurement, device refresh cycles, infrastructure planning, and long-term budgeting. Laptops, desktops, mobile devices, servers, and storage systems may all become more expensive if component costs remain high.
How JK Tech Helps
JK Tech helps businesses make more informed IT purchasing decisions as technology costs continue to change. Instead of simply replacing devices when prices rise, organisations can work with JK Tech to review actual business needs, compare suitable options, and plan purchases based on budget, performance, warranty, security, and lifecycle requirements. JK Tech supports Apple device procurement, business laptops and desktops, endpoint solutions, IT leasing and rental, infrastructure deployment, managed IT services, cybersecurity, disaster recovery, and technology lifecycle planning. As AI demand continues to influence hardware costs, businesses should take a more planned and flexible approach to IT procurement. With the right IT partner, organisations can manage cost changes while keeping their IT environment reliable, secure, and ready for future needs.
Further Reading & Resources
https://www.bbc.com/news/articles/c3wyxvqdx1zo – British Broadcasting Corporation (BBC)
Source: Osmond Chia, Business Reporter - British Broadcasting Corporation (BBC)
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