Apple to raise prices on some products as memory chip costs surge 90%, with undersupply expected to persist through 2028.

What happened: Apple said it will increase prices on some products in response to soaring memory chip costs. The cost of memory rose around 90% between the last quarter of 2025 and the first of this year, driven by rapid AI infrastructure rollout that has sent semiconductor demand surging.

Why it matters: Memory chip shortages are creating a 'double whammy' for firms—rising input costs hit at the same time consumer purchasing power is cooling. Though global manufacturers have vowed production increases, Goldman Sachs predicts undersupply will extend through 2028, meaning the cost pressures Apple faces are likely to persist.

What to watch: Apple CEO Tim Cook acknowledged the supply challenge to The Wall Street Journal, stating 'more capacity is needed.' The price increases will test whether consumers will absorb higher costs while their own spending power weakens.