iPhone price hike: Tim Cook signals higher iPhone costs as RAM prices soar

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Concise summary of key highlights

In one line

Apple to raise iPhone prices due to unsustainable RAM and chipset costs, ending previous price mitigation strategies.

Key points

• Rising smartphone costs

Smartphone makers have increased prices by 14-15% due to surging chipset costs, with additional hikes of Rs 5,000-12,000 in recent weeks.

• Chipset supply constraints

Semiconductor firms prioritise shipments to generative AI companies, reducing availability for consumer devices and driving up costs.

• Apple’s cost mitigation ends

Apple previously offset costs by increasing base storage, but Tim Cook states the situation is now unsustainable, necessitating price hikes.

• Future price increases likely

Apple will raise iPhone prices, with no significant discounts expected during seasonal sales or e-commerce promotions.

• Industry cost-cutting measures

Companies are using outdated chipsets, reducing camera sensors, and making cosmetic changes to manage rising component costs.

Key statistics

14-15%

Average price increase for new smartphones

Rs 5,000-12,000

Recent price hike range for existing models

Processed with AI. Reviewed by DH Digital Team.

Published 18 June 2026, 08:07 IST