**Apple Faces Price Increases Amid Component Cost Surge**
Apple CEO Tim Cook announced that unavoidable price increases on the company’s products are imminent due to rising component costs driven by a memory chip shortage. In an interview with *The Wall Street Journal*, Cook stated, “Unfortunately, price increases are unavoidable,” as the memory prices have doubled over the past year, impacting Apple’s gross margins, which fell to 38.7% in Q2 2026.
Research firm TechInsights estimates the memory and storage costs in a top-tier iPhone may rise from approximately $50 to $200 this year. Despite record revenue of $111.2 billion for the quarter, up 17% year over year, rising memory costs threaten to diminish Apple’s profit margins further as they anticipate continued increases beyond the June quarter, with new memory factories unlikely to come online until 2027.
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