iPhones Set to Get More Expensive as AI Boom Drives Up Costs
Tech prices are creeping up, and yeah, your next iPhone might hurt your pocket more than usual. Apple CEO Tim Cook basically said it straight up: price hikes are “unavoidable.†Why? Memory chips and RAM are getting crazy expensive, and Apple can’t keep absorbing it anymore. They’ve tried to hold the line for a while, but the pressure is too much now. So if you’re already saving for an upgrade, you might need to bump that budget up a bit. Here’s what’s really going on.
Big tech companies like Microsoft, Google, and Meta are snapping up tons of high-bandwidth memory to power AI data centres. That’s leaving way less for regular gadgets. Prices are shooting up fast. Some reports say memory costs have jumped massively in recent months, and it’s not slowing down. Even Tim Cook, who’s basically a supply chain veteran, reportedly called it a “hundred-year flood.†That’s how bad it’s gotten.
The upcoming iPhone 18 lineup could take the hit:
- Pro models may go up by around $200
- Some versions could start around $1,299
- High-storage models might pass $2,000
Apple might try to keep the base model at $799, but there’s a twist. It could show up later than usual, possibly even in 2027, while the premium models launch first.
Here’s the part people are overlooking: AI features.
“Apple Intelligence†needs way more memory than older iOS features because it runs some AI tasks directly on the device. That means RAM matters a lot.
Heavier on-device AI workloads (bigger models, faster responses): could push memory usage even higher, depending on how Apple scales it
- Basic Apple Intelligence features: likely need around 8GB RAM minimum
- Smooth performance with multitasking AI tools: closer to 12–16GB
- Heavier on-device AI workloads (bigger models, faster responses): could push memory usage even higher, depending on how Apple scales it
So yeah, more RAM isn’t just a spec bump anymore. It’s part of what you’re paying for. This isn’t new, honestly. Apple has already been adjusting prices quietly:
Basically, the entry point keeps shifting upward without much noise. Apple might lean on its cash reserves to secure long-term supply deals, but don’t expect it to go into chip manufacturing itself.
There’s another twist: Tim Cook is expected to step down soon, with John Ternus likely taking over. If that happens, the first big challenge for him will be explaining why your next iPhone costs more while selling the idea of Apple Intelligence at the same time.
