Apple signals incoming price hikes as “Unavoidable” as rising AI demand pushes memory costs to new highs

The technology and video game industries may be heading toward a scenario that directly affects consumers. Tim Cook, CEO of Apple, has warned that price increases across several of the company’s flagship products are becoming “unavoidable.”

In a recent interview with The Wall Street Journal, Cook acknowledged that Apple has spent months trying to absorb rising production costs, but the current situation surrounding memory and storage components has pushed those efforts to their limit. “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,” said Cook.

At the core of the problem is the rapid expansion of the artificial intelligence sector. Modern AI systems rely heavily on high-performance memory, driving demand to levels the global supply chain is struggling to sustain. “We definitely need memory pricing and supply to return to reasonable levels for consumer products,” said Cook. “That’s the bottom line.” This surge is having a knock-on effect on consumer electronics. Estimates from industry analysts suggest that components which once cost Apple roughly $50 per device could climb to around $200 in upcoming high-end models, highlighting just how sharply manufacturing costs are rising.

An already known case in the video game industry

The warning signs are already familiar. In a break from decades of tradition, current-generation consoles have seen mid-cycle price increases rather than the expected reductions over time. Both Sony and Xbox have publicly acknowledged the challenge. As work begins on their next-generation systems, executives face a difficult balancing act: delivering more powerful consoles while keeping launch prices within reach of a broad audience. With component costs continuing to rise, that balance is becoming harder to achieve.

Follow MeriStation USA on X (formerly known as Twitter). Your video game and entertainment website for all the news, updates, and breaking news from the world of video games, movies, series, manga, and anime. Previews, reviews, interviews, trailers, gameplay, podcasts and more! Follow us now!