Apple CEO says price hikes are likely unavoidable as chip costs rise, according to WSJ

Apple’s CEO said price increases are “unavoidable” as the cost of chips continues to weigh on consumer device manufacturing, according to a report carried by Yahoo Finance that cites The Wall Street Journal. The comment frames Apple’s pricing outlook as increasingly constrained by component costs rather than by demand, indicating that the company may need to pass more expenses to buyers even if it risks dampening demand at the high end.

The report places Apple’s challenge in a wider context across the technology hardware market. It notes that Microsoft’s newly launched Surface lineup has started at much higher prices than the prior generation, with a 13-inch Surface Pro starting at $1,499 and a Surface Laptop starting at $1,599. Those starting prices are described as roughly 50% above the prior-generation models that launched in 2024, an example of how OEMs (original equipment manufacturers) appear willing to accept customer sticker shock rather than absorb margin pressure.

For Apple, the issue matters because its strategy depends on premium pricing and tightly controlled product tiers, including frequent hardware refreshes and configuration-based upsells. Higher chip input costs can affect the economics of every configuration, from entry models to top-spec variants, since Apple’s bill of materials includes not just processors but also memory, displays, and power-management components that can move in tandem when supply chains tighten.

While Apple sells primarily through its own retail and online channels, it still faces competitive pricing pressure from Windows-based laptop and tablet makers. If the industry as a whole pivots toward higher list prices, Apple’s relative positioning can change even if the company holds the same internal margins. In that environment, management’s message to investors and customers tends to focus on which cost increases can be offset through product mix, volume, or efficiency improvements, and which cannot.

Chip costs are not a single line item, but they are often the hardest to hedge. When semiconductor pricing rises due to constrained capacity, redesigns for new architectures, or stronger demand for advanced nodes, the impact can land unevenly across product categories. Apple, like many peers, therefore often has limited near-term flexibility to reduce component costs without changing system design or timing refreshes.

Still, the WSJ report does not provide specific numbers or timelines for Apple’s next price moves in the cited Yahoo Finance posting. It also does not detail whether Apple expects price changes across the board or only for certain products, configurations, or regions. Without those particulars, it is not possible to determine how much of any potential increase would come through higher list prices versus changes in what constitutes the “base” model over time.

Sector-wide, the most immediate takeaway is that consumers may face higher starting prices across premium devices, particularly where the newest chips and components are used. For Apple, the second-order effect is on upgrade cycles, since higher prices can extend replacement intervals even when devices remain functionally adequate. The third implication is indicating: management’s willingness to describe price hikes as “unavoidable” suggests internal cost pressures are significant enough that pricing may become a more active lever than in prior cycles.

What to watch next is whether Apple confirms more concrete guidance around product pricing, gross margin expectations, or supply-chain cost outlook in its upcoming earnings communications. Investors and customers will also look for whether Apple’s next product announcements mirror the broader industry pattern of materially higher entry pricing, or instead rely on selective adjustments such as fewer configurations at certain price points, bundling changes, or targeted price moves rather than across-the-board increases.