Tim Cook says iPhone price increase is unavoidable

We're still three months or more away from the unveiling of the iPhone 18, and outgoing Apple CEO Tim Cook likely won't be the one to introduce it (given that John Ternus takes over in September).

But Cook has taken an extraordinary step — and arguably, taken one for Ternus — by warning consumers that this iPhone will be more expensive than its predecessors, thanks to an ongoing memory chip price crunch that won't end anytime soon.

"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," Cook told the Wall Street Journal in a phone interview.

"But the situation has become unsustainable ... the main point is, unfortunately, price increases are unavoidable."

Cook, who added that Apple had already been absorbing the cost of higher component prices in 2026, didn't specify which products would be more expensive, or by how much.

But with all eyes on the iPhone 18 launch this fall, it's likely Cook is preparing the ground for Apple's flagship product to pass on some of the extra component costs to customers — with increases as high as $200 above iPhone 17 prices.

Apple is still one of the largest customers in the world for memory storage, but AI companies have muscled into the game. A company called Techinsights, cited by the Journal, notes that the memory and storage components inside the iPhone 18 Pro are likely to cost Apple an extra $150 for parts alone, compared to the iPhone 17.

A recent report claimed that the iPhone Pro 18 would keep its $1,099 price from the iPhone 17 Pro and that Apple would continue to absorb the difference.

Cook, always savvy about Apple's image in the media, appears to want to squash that rumor as soon as possible.