Shares rose over 7% premarket after the president said that Apple agreed to work with Intel to design and build chips in the U.S.
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Apple has warned it will have to raise prices because of soaring costs caused by the AI boom.
Stocktwits data showed retail sentiment has improved to ‘bullish’ on SPY and QQQ from ‘bearish’ earlier in the week.
President Donald Trump said Apple agreed to work with Intel to design and build chips in the U.S., marking a huge win for the government-backed chipmaker.
Tim Cook says Apple can no longer absorb soaring memory-chip costs driven by the artificial intelligence boom, signalling higher prices for consumers and raising concerns about broader inflation across the technology sector.View on euronews
President Donald Trump said in a Truth Social post on Thursday that Apple had agreed to work with Intel to design and build its chips in the United States. Intel had reached a preliminary deal to make some chips for Apple, following discussions that went on for more than a year, the Wall Street Journal reported in May.
U.S. President Donald Trump said in a Truth Social post on Thursday that Apple has agreed to work with Intel to design and manufacture its chips in the United States. A partnership with Intel helps Apple diversify its manufacturing base as it seeks additional chip capacity. The iPhone maker relies heavily on TSMC, whose advanced production lines are in high demand from AI chipmakers such as Nvidia and AMD.

<body><p>STORY: Apple plans to raise prices for its products as a shortage of memory chips bites.</p><p>That’s according to Chief Executive Tim Cook in an interview with the Wall Street Journal published Wednesday.</p><p>A surge in AI-driven demand has left consumer electronics companies battling to secure supplies of key components, with chip prices soaring as a result.</p><p>Cook says Apple has done its best to avoid passing on the rising costs to consumers.</p><p>But he told the Journal that price hikes were now unavoidable.</p><p>He didn’t say exactly when the increases would come, or how big they would be.</p><p>Cook identified memory chips as a key issue, saying suppliers were passing on “huge” price increases.</p><p>He said Apple was ready to invest in steps to boost supply, but wouldn’t build its own memory chip factories.</p><p>Cook is due to hand over the reins to John Ternus in September.</p><p>The change in leadership will come as Apple launches key products.</p><p>It’s widely expected to debut its first folding handset that month, alongside new versions of the regular iPhone.</p></body>
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CEO Tim Cook said in a recent interview that the situation is "unsustainable."
Apple is reportedly working on AI-enabled AirPods with integrated cameras aimed for a 2027 release. The company is also said to be developing a second-generation foldable iPhone on a similar timeline. These products would mark a shift toward AI wearables and foldable devices beyond regular hardware refresh cycles. For investors tracking Apple, NasdaqGS:AAPL, the focus is often on how new product categories can complement existing revenue drivers. The stock is currently trading at $295.95,...
Apple CEO Tim Cook warns that skyrocketing memory chip costs have made consumer price increases "unavoidable."
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Apple is hardly alone in confronting this pressure. Microsoft’s newly launched Surface Pro 13-inch starts at $1,499 and its Surface Laptop at $1,599, roughly 50% above the prior-generation models that launched in 2024 at $999, with the AI-driven memory shortage cited as a central reason for the jump, according to reporting by Yahoo Finance. The repricing across the PC industry reflects a structural shift in the memory market that shows little sign of easing soon.
Apple CEO Tim Cook told The Wall Street Journal that ‘unfortunately, price increases are unavoidable.’
Apple (AAPL) closed the most recent trading day at $295.95, moving 1.1% from the previous trading session.
WSJ’s Rolfe Winkler breaks down his exclusive interview with Apple CEO Tim Cook, who said Apple is raising prices on its devices after an “unprecedented” increase in the prices and availability of memory chips.
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Apple plans to raise prices on its products to offset increasing memory and storage chip costs, CEO Tim Cook told the Wall Street Journal in an interview. A surge in AI-driven demand for data centers has forced consumer electronics companies into a fierce competition for dwindling supplies of the key components, driving prices sharply higher. Groups representing automakers, retailers, electronic firms and others had warned earlier this month that the increasing demand for memory chips could lead to dramatic price hikes in U.S. consumer goods and disrupt supply chains.
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The memory-chip crunch is pushing up prices for all electronics. Even Apple, which dominates the supply chain, isn’t spared.
The CEO tells the Journal in an exclusive interview that soaring costs make price increases “unavoidable.”
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