Apple to Raise iPhone, MacBook and iPad Prices as Tim Cook Confirms Impact of Global Chip Shortage

Apple is set to raise prices across its iPhone, MacBook and iPad ranges as chief executive Tim Cook confirms the impact of a global chip shortage is driving sustained cost pressures that are now feeding directly into retail pricing decisions across Apple's product line.

With shortages of memory and storage chips still unresolved, Cook said Apple has been left with little choice but to respond to escalating supply chain costs, despite efforts to shield customers from increases.

'We're doing our best to mitigate the huge increases that are being passed to us, and we've been trying to shield our customers from the increases, but the situation has become unsustainable,' Cook said in an interview with The Wall Street Journal.

Expect Higher Prices for Future Apple Devices

The price hikes for Apple products are something most had dreaded for a while now. With Cook confirming the impact of the chip shortage, Apple is now expected to raise prices across its devices, including future iPhone, MacBook and iPad models.

The remaining question is when these will take effect, and how broadly the increases will be applied across Apple's product tiers.

There is now growing expectation that steeper prices will be introduced when Apple launches its premium iPhone 18 models later this year.

Cook's announcement also directly challenges the claims of analyst Ming-Chi Kuo that Apple would absorb the high chip costs tied to the iPhone 18 to retain its market share. He previously projected that the company should take advantage of the chaos to grab more market share in a previous IBT UK post.

However, Cook's comments now indicate that cost pressures are too steep for Apple to fully absorb, making price adjustments more likely across its hardware lineup.

Steeper-Priced iPhone 18 Phones Imminent

A glimpse of the iPhone 18 Pro and the iPhone 18 Pro Max is expected in the fall. Notable improvements from these devices are expected to be the RAM configurations, enhancements that would also affect Apple's entry-level offering, the iPhone 18.

Consolidating that with Cook's confirmation of chip-driven cost pressures, higher prices for the next iPhone models, along with MacBook and iPad updates, now clearly loom as part of a wider pricing shift across Apple's ecosystem rather than a single-product adjustment.

According to BBC News, the next Apple phones are likely to cost roughly $150 (£113) more than the iPhone 17 series. The projection aligns with a forecast that the average selling price of smartphones globally is expected to rise by around 20% in 2026, according to research firm Omdia, reflecting broader industry-wide inflation in component costs rather than Apple alone.

Bad news as it may be, higher-priced devices were already widely expected. Mark Gurman of Bloomberg, an individual who frequently provides leaks and information on Apple-related products, said the price hike is something that was hard to avoid.

'Regarding Apple price hikes, have to imagine these are fairly imminent. No other reason to flag them now. I'd also note that Apple back to school sale is very imminent, and it could make sense to tie these together as a buffer. Either way this is happening soon. Not a fall thing,' Gurman said on X.

Monitor Back-to-School Sales Offers

It should be noted that, aside from iPhones, MacBooks and iPads are also expected to be affected, meaning price increases could extend across Apple's entire hardware ecosystem. Hence, current devices may see price changes once Apple implements its new pricing strategy.

Apple has not yet specified when the increases will take effect, and may not formally announce the timing in advance, leaving consumers and retailers to react once pricing adjustments appear in product cycles rather than official announcements.

Consumers looking to upgrade their devices are therefore being advised to act sooner rather than later. Some may want to buy a new iPad or MacBook earlier since the cost of getting one could be out of reach.

A practical option would be to check out deals across the web. As mentioned by Gurman, back-to-school deals would be a fine source to get reasonably priced Apple devices, although these may not always include the latest models.

The shortage of memory and storage chips was due to a surge in AI-driven demand for data centres. This has resulted in fierce competition among several companies, a reason why current supplies are dwindling.