Apple is considering price increases across its product lineup as the global shortage of memory and storage chips continues to put pressure on manufacturing costs, according to Chief Executive Officer Tim Cook. The announcement comes amid a prolonged DRAM supply crunch that has already affected the broader smartphone industry, with rising component prices forcing companies to reassess their pricing strategies.

Speaking to The Wall Street Journal, Cook said Apple has so far absorbed much of the increased cost of memory components but warned that the current situation is becoming unsustainable. While he did not specify when the price hikes would take effect or which products would be affected, he indicated that adjustments are likely as the company seeks to offset mounting expenses. Cook is also expected to hand over the CEO role to John Ternus in September.

The shortage has been driven largely by surging demand for artificial intelligence infrastructure, with memory manufacturers increasingly allocating supplies to high-bandwidth memory used in AI servers. As a result, the availability of DRAM chips for consumer electronics has tightened significantly, leading to sharp price increases across the technology sector and intensifying competition among device makers.

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"Unfortunately, price increases are unavoidable. 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. He added that the imbalance between supply and demand has made it difficult for companies to maintain stable pricing for consumer products.

Industry groups representing automakers, retailers and electronics manufacturers had earlier warned that escalating memory chip demand could disrupt supply chains and trigger higher prices for a wide range of consumer goods in the United States. Cook noted that Apple wants memory pricing and supply conditions to return to more reasonable levels, stressing that the current market environment is creating significant challenges for the industry.

Cook also revealed that Apple is prepared to use its financial resources to help increase memory supply if necessary, although he did not provide further details on how the company plans to do so. At the same time, he clarified that Apple has no intention of building its own memory or storage manufacturing facilities, instead continuing to rely on its existing supplier network while navigating the ongoing component shortage.

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