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Apple Prepares Price Hikes as AI Craze and Global Instability Drive Up Costs

Outgoing CEO Tim Cook admits rising component costs are unsustainable, while Trump secures domestic production deal with Intel.

TechPublished June 18, 2026 at 2:03 PM
Apple CEO Tim Cook smiles as he holds up an orange iPhone 17 Pro during an event at the company's headquarters

Apple is signaling that higher prices for its products are on the horizon, as the tech giant grapples with the 'unsustainable' cost of memory chips.

Outgoing CEO Tim Cook acknowledged that the company can no longer shield customers from the massive price spikes caused by the artificial intelligence boom, which has tightened supply and sent component costs soaring.

While Cook has not specified which products will be hit or when the increases will take effect, industry analysts suggest that the next generation of iPhones could see price jumps of up to $150.

The situation is further complicated by global instability, including conflict in Iran, which has disrupted the supply of helium—a critical resource for semiconductor manufacturing.

Amidst this economic pressure, President Donald Trump announced a significant move to bolster national security and domestic manufacturing, stating that Apple has agreed to collaborate with Intel to produce chips within the United States.

This pivot toward American-made technology comes as other major players like Samsung also warn that chip shortages will inevitably make consumer electronics more expensive. With global smartphone prices projected to hit record highs in 2026, the era of stable tech pricing appears to be coming to an end.

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