CALIFORNIA: Apple has indicated that higher memory chip costs could lead to price increases for some of its devices, with outgoing Chief Executive Officer Tim Cook saying the company can no longer fully absorb rising component expenses.

In an interview with the Wall Street Journal, Cook said surging demand for memory chips driven by artificial intelligence (AI) has pushed costs to unsustainable levels. He did not specify when price hikes might take effect or which products would be affected.

Analysts expect future Apple devices, including upcoming iPhone models, to become more expensive as manufacturers face higher semiconductor costs and add AI-focused features.

The broader technology sector is also under pressure. Companies including TSMC, Samsung, Sony and Nintendo have warned of rising costs linked to semiconductor shortages and supply chain constraints.

Despite the cost pressures, Apple continues to report strong demand for its products, particularly in China, ahead of a planned leadership transition later this year.