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.

“Unfortunately, price increases are unavoidable,” he told WSJ. “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, who will hand over the reins to John Ternus in September, did not disclose when or how much prices might rise, nor which products could be impacted.

Apple did not immediately respond to a Reuters request for comment.

(Reporting by Juby Babu in Mexico City; Editing by Leroy Leo)