Apple raised prices on iPad and MacBook models on Thursday, attributing the increases to soaring costs of memory and storage chips, which have been driven up by the artificial intelligence industry's rapid expansion of data centers. The company stated it could no longer shield customers from the component price surge.
Price increases across product lines
The price adjustments include a $200 increase for the MacBook Air with 512 gigabytes of storage, while the MacBook Pro with 1 terabyte of storage becomes $300 more expensive. The starting price of the Neo, Apple's lowest-priced laptop, rose from $599 to $699 just months after its launch. Apple also raised prices for both versions of the HomePod smart speaker and the Apple TV set-top box.
According to Apple, the component price increase is unprecedented in both magnitude and speed. "We have never seen a component price increase this much, this quickly," Apple said in a statement. "We have shielded our customers from these increases so far, but we have now reached a point where we need to begin raising prices on a number of products, including today's increases for iPad and Mac."
Impact of AI-driven demand on memory chips
The price surge is largely attributed to memory makers like Micron prioritizing orders from AI chipmakers such as Nvidia, leaving limited supply for consumer electronics manufacturers. This shift has enabled memory makers to achieve record profits but has forced electronics companies to raise prices. Industry tracker TrendForce reported that prices of dynamic random access memory (DRAM) rose as much as 98% in the first quarter of 2026 and are expected to jump another 58% to 63% in the current quarter.
Micron announced on Wednesday that it has secured $22 billion in long-term commitments from customers seeking to guarantee memory supplies. The phenomenon has been dubbed "Ram-ageddon" by some experts, reflecting the severity of the shortage.
Market reaction and future expectations
Following the announcement, Apple's shares fell nearly 5%, while rival Dell's shares dropped more than 8%. Analysts noted that Apple's deep supplier relationships have provided some cushion, allowing it to raise prices less sharply than some competitors. However, expectations are that iPhone prices will also increase. "The iPhone isn't spared. Its hike is coming," said Nabila Popal, a senior research director at IDC. "It was incredibly strategic for Apple to make the price hike announcements prior to the iPhone fall launch, so the headlines at launch is not the price hikes but the value the new phones bring."
The rising costs are expected to weigh heavily on device sales this year. IDC estimates that the smartphone market will see its biggest-ever annual decline of nearly 14% this year, while the PC market is projected to fall 11.3%.
