iPhone 18 Prices May Rise as Trump Confirms Apple-Intel Chip Deal in US
Apple warns an iPhone price increase is unavoidable as AI-driven chip costs surge, while Trump's new Apple-Intel manufacturing deal signals a major shift in US semiconductor production and Apple's supply chain strategy.
iPhone 18 Pro, Mac, and iPad prices are expected to rise from September 2026 onwards
Key Highlights
- Trump officially announced the Apple-Intel chip deal on June 18, 2026 via Truth Social, confirming that Apple will produce chips inside the United States for the first time.
- Intel stock surged 9–10% immediately after the announcement, reflecting massive investor confidence in the deal.
- The deal covers only older M-series and lower-end chips flagship devices like the iPhone 18 Pro and M5 Mac will still rely on TSMC for production.
- Tim Cook warned in a Wall Street Journal interview that iPhone price hikes are "unavoidable" due to the AI-driven global memory chip crisis Apple can no longer absorb.
- iPhone 18 Pro, Mac, and iPad prices are expected to rise from September 2026 onwards, with Mac and iPad likely seeing hikes even sooner.
- India's premium and feeder segments - including the E series iPhones, Neo MacBooks, and Air tablets face the most direct impact from the coming price surge.
Two massive developments hit the global tech world this week simultaneously. First, Trump officially announced that Apple will now produce chips inside the United States in partnership with Intel. Second, Apple CEO Tim Cook publicly warned that iPhone prices are going up and he cannot stop it. Together, both developments signal a clear turning point.
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Trump Announces Apple-Intel Chip Deal on Truth Social
US President Donald Trump announced on Thursday, June 18, that Intel has struck a deal with Apple to start producing computer chips in the United States.
In a post on Truth Social, Trump wrote: "I decided to help Intel because we need to design and build our Chips right here in America."
The announcement sent Intel stock surging more than 10% and reignited the conversation around American semiconductor independence. Following initial rumours that Apple was in discussions with Intel over manufacturing processors, it was revealed in May 2026 that test production had already begun. Trump's Truth Social post now officially confirmed it.
What Exactly Is This Deal?
The move will help Apple diversify its manufacturing base. Apple largely relies on Taiwan specifically TSMC to manufacture the processors that power its iPhones, iPads, and Mac computers.
However, this deal does not cover Apple's most powerful chips. Intel will not be making chips for the forthcoming iPhone 18 Pro Max, nor the M5 or later chips for the Mac. What is most likely is that Intel will produce older M-series chips for devices such as the iPad Pro and MacBook Air. It may also make processors for the non-Pro versions of the iPhone.
Apple CEO Tim Cook acknowledged during Apple's Q2 2026 earnings call that iPhone 17 production had been "constrained" because TSMC could not produce enough A19 chips to satisfy demand a supply ceiling that made commercial diversification as urgent as strategic resilience.
Analysts who track chip supply chains caution that Intel is unlikely to displace TSMC for Apple's most advanced silicon within any reasonable planning window. Intel's next process node - 14A - is targeting volume production no earlier than around 2029.
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The US Government's Role
The Trump administration converted $8.9 billion in CHIPS and Science Act grants into a 9.9% equity stake in Intel in August 2025, making the US government Intel's largest shareholder. Intel's stock has risen more than 225% year-to-date, surpassing its August 2000 peak and setting fresh all-time highs above $133. Intel's Q1 2026 revenue hit $13.6 billion, crushing estimates.
The semiconductor supply chain and plans to reduce dependence on Taiwan chip production were also key topics at the G7 Summit in France, just days before the announcement.
Tim Cook Confirms - iPhone Prices Are Going Up
Alongside the chip deal announcement, Apple CEO Tim Cook issued a significant warning to consumers this week. Cook told the Wall Street Journal that price hikes on Apple products are "unavoidable" because of the rising costs of memory and storage chips sparked by the AI boom. He said: "We're doing our best to mitigate the huge increases that are being passed to us, and we've been trying to shield our customers from the increases, but the situation has become unsustainable."
Cook called the situation the worst price swing he has seen in his 40 years working in electronics, describing it as a "hundred-year flood."
Why Are Prices Rising - The AI Memory Crisis
The surge in demand from AI companies for high-bandwidth memory has reportedly quadrupled the cost of DRAM and NAND chips since last year, as manufacturers prioritise supplying data centres over consumer electronics. Chipmakers such as Samsung, SK Hynix, and Micron are expanding capacity, but most of it is being directed to AI servers rather than consumer devices.
Apple analyst Ming-Chi Kuo flagged the implications in a post on X, noting that iPhone memory pricing had moved to quarterly negotiations from the previous six-month cycle, and that another hike was already visible for the second quarter of 2026.
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Which Apple Products Will Get More Expensive?
Cook did not specify which products would see price hikes or by how much. However, reports suggest the iPhone 18 Pro and Pro Max could cost more than their iPhone 17 counterparts. Mac and iPad prices are also likely to rise. Apple has already raised the price of the Mac Mini by discontinuing its entry-level model.
The full extent of the damage is expected to become public when Apple unveils the iPhone 18 and likely the iPhone Ultra in September. Prices of Macs and iPads might rise sooner.
Cook ruled out manufacturing memory chips in-house. He said: "We're willing to use our balance sheet to help be a part of the solution," but clarified Apple has no plans to build its own memory and storage factories.
What This Means for India
India is one of Apple's fastest-growing markets and this news hits directly.
In India, Apple had 28% smartphone market wholesale value share in CY 2025 while having roughly 9% market share in terms of shipments, reflecting just how dominant Apple is at the premium end of the Indian market.
Analysts flagged Apple's so-called feeder portfolio as the most exposed in markets like India. "For India and other emerging markets, I do see some concern around its 'feeder portfolio' - essentially the E series of smartphones, Neo for MacBooks and Air for Tablets — where we might get to see early impact."
Apple Watch and AirPods are likely to remain insulated from price hikes as they "still run on legacy silicon, and the volumes are far lower" compared to iPhones, Macs, and iPads.
For Indian consumers currently on the fence about buying an iPhone or Mac - analysts suggest the current generation may represent the last relatively stable entry point before prices climb.