Apple raises Mac and iPad prices globally, citing AI-driven memory chip costs
Apple has raised prices on MacBooks and iPads worldwide by as much as $500, blaming climbing memory chip costs driven by the AI industry's datacenter buildout. Microsoft also announced Xbox price increases, citing the same chip squeeze.
The price hikes
Apple on Thursday increased prices for MacBook laptops and iPad tablets globally. The increases range from $100 to $500 in the United States, with similar percentage jumps in other markets. In Belgium, for example, the base iPad went from €389 to €509, a 31% rise, while the MacBook Pro climbed €300 to €2,229. The MacBook Neo, Apple's budget laptop, saw a €100 increase to €799. iPads and Macs across the line saw hikes, but iPhones, Apple Watches, and AirPods were spared for now.
- iPad
- 30.8 %
- iPad Air
- 23.9 %
- iPad Pro
- 17.9 %
- iPad mini
- 23.3 %
- MacBook Air
- 19.2 %
- MacBook Pro
- 15.6 %
- iMac
- 19.7 %
- MacBook Neo
- 14.3 %
AI-driven memory crunch
Apple attributed the price hikes to rapidly rising costs of DRAM and NAND memory chips, driven by the rapid expansion of AI data centres. The company said in a statement:
CEO Tim Cook had warned earlier,We have never seen a component price increase this much, this quickly.
, calling it a "hundred-year flood." The AI industry's demand for high-bandwidth memory has outpaced supply from the three major makers, SK Hynix, Samsung, and Micron.There's less supply at a time when consumers want devices and the memory guys are passing along huge price increases.
Broader consumer tech impact
The memory chip shortage is not limited to Apple. On the same day, Microsoft announced it would raise Xbox console prices by $100 to $150 starting August 1. Sony and Nintendo had already taken similar steps. Wedbush analyst Dan Ives called the situation an
Consumer technology analyst Avi Greengart noted that the price increases could be psychologically jarring for consumers accustomed to falling gadget prices. IDC's Francisco Jeronimo highlighted that even the popular MacBook Neo, on track to be the top-selling laptop this quarter, saw a price increase, suggesting Apple is willing to sacrifice growth to protect margins.unprecedented challenge for device makers like Apple.
What about the iPhone?
Apple kept iPhone prices unchanged, but analysts widely expect a price hike when the iPhone 18 launches in September. Nabila Popal of IDC predicted an additional $100 to $200, but said an early warning could soften consumer resistance:
The iPhone is Apple's biggest revenue driver, and the company often introduces new features to justify price increases. Incoming CEO John Ternus, who takes over September 1, will have to navigate that delicate launch.If consumers are psychologically prepared for higher prices, it won't impact sales.
Market reaction and outlook
Investors reacted negatively: Apple's share price fell 6.15% on Thursday, erasing about $250 billion in market value. The stock drop reflects concerns about sales headwinds if consumers balk at the higher prices. For now, some retailers in Australia, such as JB Hi-Fi and Officeworks, have not yet passed on the increases, but the global nature of the hike is set to ripple through channels.
- Tim Cook tells WSJ price increases are unavoidable
- Apple raises MacBook and iPad prices worldwide
- Microsoft Xbox Series X and S prices increase $100-$150
- iPhone 18 launch expected with $100-$200 price increase
