Apple is preparing for higher prices across its product lineup as surging chip costs tied to the AI boom pressure the company to pass additional expenses to consumers, with analysts projecting a possible $150 increase for the iPhone 18.

The technology giant is preparing to adjust prices for iPhones, Macs, iPads and other products as memory and storage chip costs continue to climb amid tighter global supply. Apple CEO Tim Cook said the price increases are becoming “unavoidable” due to growing supply chain pressures.

Analysts expect the iPhone 18 lineup to be among the products most affected, with possible price hikes ranging from $100 to $150. Some experts also believe Apple could raise prices on lower-storage models more aggressively to encourage customers to choose higher-margin versions.

The expected increase comes as semiconductor manufacturers face rising demand from artificial intelligence companies, whose data centers require large amounts of advanced memory chips and storage technology.

The transition to newer chip designs, including 2-nanometer processors, is also adding to production costs. Industry estimates suggest the higher component expenses could significantly increase the cost of producing premium iPhone models.

Apple has not announced specific price adjustments or identified which products will become more expensive first. However, analysts expect the company to introduce increases gradually as it manages higher manufacturing expenses.

The move would mark a rare shift for Apple, which has traditionally absorbed some supply chain cost increases while maintaining premium pricing strategies for its devices.