Apple raises iPhone prices as memory shortage drives costs up

Your adjacent iPhone is going to costs you.

On Tuesday, Apple announced the caller iPhone 18 Pro and Pro Max — pinch value tags $100 higher than the erstwhile Pro models. It besides announced the new foldable iPhone Duo, priced astatine $1,999. Apple has yet to denote the entry-level iPhone 18.

The higher prices exemplify really the world representation shortage has stretched a institution arsenic ascendant arsenic Apple.

In his last net telephone arsenic CEO, Tim Cook said that Apple had "reluctantly raised prices" of iPads and MacBooks owed to the representation shortage.

"We did it because we're successful what I would qualify arsenic a 100-year flood connected the representation pricing pinch exponential increases successful representation prices," Cook said.

The memory shortage is mostly driven by the AI gyration arsenic chipmakers displacement accumulation distant from chips designed for user products to the much specialized chips required for the information centers that powerfulness AI models.

In June, Apple accrued the prices of iPads by up to 25% and Mac computers by arsenic overmuch arsenic 20%. At the time, the costs of existing iPhone models remained unchanged.

Other companies, including immoderate of Apple's competitors, person besides hiked instrumentality prices.

Officials astatine Samsung and Google person said they raised prices connected immoderate of their smartphone models successful portion owed to rising representation costs.

"There's ne'er been an summation successful representation prices for illustration the world's going done correct now," Google's vice president of devices and services, Shakil Barkat, said successful July up of the merchandise of the Pixel 11.

Ultimately, Google tacked $100 onto the Pixel 11, though it besides doubled the retention of the baseline version arsenic Google discontinued the 128GB model.

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