Apple has already hiked prices on Macs, iPads, Apple TV, and HomePod by $100 to $500. The iPhone is next.

The company’s upcoming iPhone 18 series, expected to launch in September 2026, is projected to carry price increases of $50 to $150 for base models and up to $200 for Pro configurations. The culprit is something most consumers never think about: the memory and storage chips buried inside every device they own.

DRAM and NAND chip prices jumped 90 to 95% quarter-over-quarter in Q1 2026. The kind of components that store your photos, run your apps, and keep your device from crawling to a halt nearly doubled in cost in the span of three months.

Why chips got so expensive

The explosive buildout of AI infrastructure, from training large language models to running inference at scale, requires enormous quantities of high-bandwidth memory and advanced storage. That demand has created supply shortages projected to persist into 2027.

Apple had been managing the pressure for a while. The company reportedly absorbed costs and adjusted storage tier configurations to avoid passing the full impact to consumers. That strategy has apparently reached its limit.

“Unfortunately, price increases are unavoidable.”

That was CEO Tim Cook in mid-June 2026, publicly acknowledging what analysts had been warning about for months. Cook described the current cost environment as unsustainable.

The price hikes already in effect

Apple moved on several other product lines in late June 2026. Mac prices rose by $100 to $500 depending on configuration. iPads, Apple TV, and HomePod all received similar treatment.

Analyst estimates suggest the base iPhone 18 models could see $50 to $150 in additional cost, while the Pro variants could climb by as much as $200.

What this means for investors and the broader market

Competitors face their own version of this dilemma. Samsung, Google, and other Android manufacturers rely on the same memory chips. They’ll either need to raise prices too, creating an industry-wide reset, or find creative ways to absorb costs, perhaps by offering lower storage tiers or cutting features elsewhere.

For the semiconductor companies themselves, particularly memory giants like Samsung, SK Hynix, and Micron, the current environment is a windfall. Higher prices and constrained supply translate directly to fatter margins.

If the buildout of AI infrastructure continues at its current pace, chip shortages could persist well into 2027 and beyond, keeping prices elevated for longer than historical cycles would suggest.