Summary
- Apple CEO, Tim Cook has confirmed that the ongoing component cost hike has had minimal effect on Q4 2025 margins.
- He expects sizable impact in the coming months as the brand adjusts to the RAM and storage prices.
- Apple is looking to bring a counter strategy to keep iPhone 18 series prices unaffected.
We're barely a month into 2026 and every major smartphone brand has already raised prices across both new and existing phones. Apple, however, seems to be holding steady and Tim Cook's latest remarks shed light on how the brand is navigating rising RAM prices.
Tim Cook responds to rising RAM and storage prices
In an interview made to Bloomberg Media, Apple CEO Tim Cook has confirmed that the current component price and scarcity fiasco had little to no effect on the brand's Q4 2025 earnings. The iPhone maker has been able to generate the expected gross margin revenue and Apple's Q1 2026 earnings call is proof of that.
This comes after Kuo's analysis revealed that iPhone 18 might avert price hike in September 2026. However, Apple might look to inflate the upcoming lineup's price minimally, as Cook admits that he expects a "bit more of an impact" in Q1 2026.
He further goes on to add that if the impact becomes substantially high, the brand will look for strategic measures to counter the long-term cost impacts. If we are to believe Kuo's analysis, Apple might sacrifice short-term revenue for long-term market share.
However, that remains to be seen in the coming months. If at all Apple decides to raise its new iPhone prices, it will also reflect in other verticals like the MacBooks, iPads, Apple Watches and even Apple TV. Also, with the iPhone Fold coming later in 2026, this year is crucial for Apple.
Source
Bloomberg
