AI is hurting Apple in more ways than one: it may force iPhone price increases

Tim Cook warned that surging DRAM and NAND costs, driven by AI demand, make Apple price increases “unavoidable” despite efforts to absorb the impact. Analysts say the next iPhone lineup could be especially exposed, with one estimate suggesting Apple may need to add about $270 to an iPhone Pro to preserve margins.

The shortage shows how AI infrastructure demand is spilling into consumer electronics, raising component costs even for companies not yet benefiting much from AI features. If Apple increases iPhone prices, it could test consumer tolerance at a time when the company is already under pressure to prove its AI strategy.