Apple says ‘100-year flood’ in memory prices drove Mac and iPad price increases

Apple raised Mac and iPad prices in June because memory costs increased sharply, and CEO Tim Cook says the company had little choice despite wanting to avoid higher prices.



During Apple's Q3 2026 earnings call, Cook explained that the decision came after memory prices reached unusually high levels, making it difficult for Apple to absorb the extra costs while maintaining its business.



Tim Cook says memory prices forced Apple's decision




"On the pricing front, you know, we reluctantly raised prices. I would say we did it because we're in what I would characterize as a 100-year flood on memory pricing with exponential increases in memory prices, so that was the rationale for it."




Cook also explained that Apple does not rely on a single financial target when deciding whether to increase prices. Instead, the company reviews product sales, revenue, and profit margins before making a long-term business decision rather than focusing on one quarter.




"We look at units, revenue, and margin, and then come to a business judgment as to how to handle that. We look at all three dimensions and think about it over the long term instead of a 90-day clock."




Cook did not say whether Apple plans to increase iPhone prices when the iPhone 18 Pro lineup and the company's first foldable device arrive this September. However, he confirmed that Apple expects memory costs to remain high during the September quarter, although lower prices for some non-memory components and existing inventory will help reduce part of the impact.