Cook stated that due to the continued rise in memory and flash storage prices, Apple has found it increasingly difficult to fully absorb these costs, making future price increases for its products 'unavoidable.' According to reports, Apple will release only the iPhone 18 Pro and Pro Max, along with its first foldable iPhone, this fall, followed by the standard iPhone 18 and the second-generation iPhone Air next spring.
As the AI boom drives up storage chip costs, Apple is preparing to pass some of this cost pressure on to consumers. Meanwhile, the world’s most valuable consumer electronics company is also accelerating its product line refresh: the second-generation ultra-thin iPhone Air has entered advanced testing and is scheduled for launch in spring 2027, with upgraded camera capabilities and enhanced battery life to boost its appeal.
According to a Wednesday report by The Wall Street Journal (U.S. Eastern Time, the 17th), Apple CEO Tim Cook told the publication that persistent increases in memory and flash storage prices have made it increasingly difficult for the company to fully absorb these costs, making future price hikes “inevitable.” However, Apple has not yet decided on the timing, magnitude, or specific products affected by the potential price increases.
Also on Wednesday, Bloomberg reporter Mark Gurman, citing sources familiar with the matter, reported that Apple’s second-generation iPhone Air, codenamed V62, has already entered internal advanced testing and is expected to be launched in spring 2027. The new device will retain its current ultra-thin design while adding an ultra-wide-angle lens and improving battery life. Apple is also adjusting its iPhone release cadence to more evenly distribute revenue and strengthen its competitive positioning against rivals such as Samsung.
AI-Driven Storage Price Surge Prompts Apple to Acknowledge Rare Pricing Pressure
According to The Wall Street Journal, surging demand for AI servers is straining storage chip supplies for the consumer electronics industry. Tech giants such as Microsoft, Google, and Amazon are aggressively procuring HBM and high-end DRAM chips, prompting manufacturers like Samsung Electronics, SK Hynix, and Micron to prioritize data center customers.
Cook stated:
“This is one of the worst supply-demand imbalances I’ve seen in forty years.”
He stated that Apple has sufficient cash reserves to support its supply chain but would not consider building its own memory chip fabrication facilities.
According to estimates by TechInsights, rising memory and flash storage costs alone could increase the bill of materials for the next-generation premium iPhone by over USD 140 per unit. If Apple maintains its current profit margins, prices for its upcoming product generations may rise further.
Second-Generation iPhone Air Enters Advanced Testing: Adds Dual Cameras, Focuses on Battery Life Improvements
According to Bloomberg, prototype units of the second-generation iPhone Air, codenamed V62, have already entered Apple’s internal advanced testing phase.
According to informed sources, one of the most significant changes in the new device is the addition of a second rear camera, upgrading from a single-camera to a dual-camera system with support for ultra-wide-angle photography.
Internally, Apple considers the camera system and battery life to be the two areas most in need of improvement in the current Air model. The existing iPhone Air features a single-camera design, which has been one of the most frequently cited shortcomings in user feedback.
The new device will retain the current ultra-thin design, but Apple is working to enhance battery performance. It remains unclear whether the improved battery life will result from a higher-capacity battery or greater chip energy efficiency, as the Air’s slim form factor limits available space for the battery.
The second-generation Air will feature a customized version of the A20 Pro chip, which will also power the iPhone 18 Pro series launching this fall.
Apple adjusts iPhone launch schedule: premium models to debut in the fall, standard models shifting to spring
As part of Apple’s new design strategy for its $210 billion iPhone business, the Air series was first introduced in September 2025. Although its sales have outperformed the previously underwhelming mini and Plus models, it has yet to enter Apple’s highest-selling product tier.
According to informed sources, this is also a key reason Apple can afford to slow down the Air update cycle. Approximately 18 months will elapse between the launches of the first- and second-generation Air models. However, the product timeline and final specifications remain subject to change, and an Apple spokesperson declined to comment.
Meanwhile, Apple is undertaking a major overhaul of its long-standing iPhone release schedule.
In the past, Apple typically launched all major iPhone models at once each September. Starting this year, however, the fall event will focus exclusively on premium models, introducing only:
iPhone 18 Pro;
iPhone 18 Pro Max;
Apple's first foldable iPhone.
Approximately six months later, in spring 2027, Apple will launch the standard iPhone 18 alongside an upgraded second-generation iPhone Air.
Subsequently, in fall 2027, Apple also plans to introduce two 20th-anniversary edition iPhones and a second-generation foldable model. Bloomberg previously reported that the 20th-anniversary editions will feature a four-curved-edge display design, with the screen extending to the edges of the device.
The Air serves a differentiation role, as Apple aims to achieve balanced growth throughout the year.
The current iPhone Air, priced at USD 999, is among the thinnest smartphones on the market; however, its slim profile makes it difficult to accommodate certain hardware components found in Pro models, necessitating compromises in camera specifications and battery life.
However, Apple internally views the Air series as having unique value within its product portfolio.
John Ternus, Apple’s head of hardware who is set to succeed Tim Cook as CEO next year, has stated that the Air series helps further differentiate Apple’s product lines. Not all users require all the features of Pro models, but many desire a device that balances portability and design aesthetics.
According to Bloomberg, Apple’s phased release strategy not only helps distribute revenue more evenly across the year but also enhances its competitiveness against Samsung, which typically launches flagship products at multiple points throughout the year rather than concentrating them in a single quarter.
With the introduction of its first foldable iPhone, 20th-anniversary edition models, and ongoing iterations of the Air series, Apple is gradually shifting from its traditional ‘one major launch per year’ model toward a new cycle of continuous updates throughout the year. For this consumer electronics giant, maintaining growth through a broader range of product form factors and more frequent releases has become a core strategic priority for its iPhone business in the coming years, particularly amid rising cost pressures in the AI era.
Editor/Liam