Will iPhone prices rise amid skyrocketing chip costs?

Rising costs in the global semiconductor market are fueling questions about whether Apple could eventually raise iPhone prices, as demand for memory chips surges amid the rapid expansion of AI infrastructure.

MacRumors reports.

Will the memory chip boom raise costs for Apple products?

According to industry reports, chipmakers including TSMC, Samsung, and SK Hynix are struggling to meet demand despite operating near full capacity. Taiwanese research firm TrendForce estimates that conventional DRAM contract prices could rise by as much as 90–95% this quarter, while NAND prices may increase up to 55–60% compared to the previous quarter. NVIDIA has reportedly overtaken Apple as TSMC’s largest customer, underscoring how AI-related demand is reshaping the supply chain.

Apple is not immune to these shifts. During a recent earnings call, CEO Tim Cook acknowledged that higher chip prices would have "a bit more of an impact" on the company’s gross margin in the current quarter. Still, Apple projected strong financial performance, forecasting revenue growth of 13% to 16% and maintaining an expected gross margin of 48% to 49%.

Rather than passing higher costs directly to consumers, Apple appears to be focused on internal measures. Cook said the company would consider "a range of options" to address rising component prices, without providing details.

For now, analysts say iPhone price hikes remain unlikely. Supply chain analyst Ming-Chi Kuo recently stated that Apple plans to avoid raising prices for upcoming iPhone 18 Pro models, predicting that starting prices will at least remain unchanged compared to the iPhone 17 Pro lineup.

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