Cook Calls Price Hikes Unavoidable

Apple’s juggling three major shocks at once: soaring memory chip prices from the AI gold rush, new iOS app store rules in Brazil, and a looming handoff from Tim Cook to John Ternus as CEO. The stakes are real—a “hundred-year flood,” as Cook put it. Memory suppliers are channeling chips to AI servers, causing DRAM prices to jump over 50% quarter-on-quarter. To keep margins intact, Apple may need to raise iPhone Pro prices by $270, according to TechInsights. The company’s already nudged up MacBook prices and eliminated entry-level Mac minis, signaling this squeeze isn’t just hypothetical. With smartphone prices globally projected to climb 20% by 2026, who absorbs the pain—Apple or buyers? If Apple passes costs straight through, upgrade rates could slump, especially if only pricier models support new AI features like advanced Siri.

But here’s the catch: while Apple faces cost crunches, it’s also loosening its grip in Brazil. Developers there can now distribute apps outside the App Store and pick alternative payment methods, but Apple still claims a cut—5% on non-App Store sales, 15% for certain off-app web purchases. That’s hardly a free-for-all. Large developers like MercadoLibre stand to benefit from lower effective fees and better customer data, but smaller devs may just see new paperwork. Meanwhile, Apple keeps its security gate up, and the new fee structure ensures it won’t lose much revenue unless alternative marketplaces really take off—a big “if.”

Leadership transition looms as Ternus prepares to take the reins, and these pricing and platform bets will be his first test. The spotlight is on September’s iPhone launch: if higher prices stick and Pro demand holds, Apple keeps its pricing power. If not, it’s a sign that even Apple isn’t immune to market pushback. Insight based on reporting from the Wall Street Journal, TechCrunch, Omdia, BBC, and more.

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