Apple raises iPad and Mac prices as AI chip boom squeezes supply
Apple has raised prices for MacBooks and iPads, signaling that an AI-driven memory chip shortage will soon force higher costs across the consumer electronics market.
Apple raised prices on its MacBooks and iPads on Thursday, warning that it can no longer absorb a massive surge in memory chip costs driven by the AI industry. The price hikes signal a broader shock heading for the global consumer electronics market as artificial intelligence infrastructure consumes the world's supply of vital components.
The company increased the starting price of its lowest-priced laptop, the Neo, from $599 to $699 mere months after its launch. A MacBook Air with 512 gigabytes of storage saw a $200 increase, while a MacBook Pro with 1 terabyte rose by $300. Apple also lifted prices for both versions of its HomePod smart speaker and its Apple TV set-top box.
The iPhone, Apple's cash cow, was not included in this round of increases. However, the catalyst for these hikes is a severe reallocation of memory chip supplies that will eventually affect all devices. Manufacturers like Micron are prioritizing long-term contracts with AI chipmakers like Nvidia, leaving traditional consumer electronics firms scrambling for components.
Micron announced on Wednesday it had locked in $22 billion in such long-term commitments from customers looking to secure their AI memory supplies. The resulting squeeze on dynamic random access memory, used in virtually all modern tech gadgets, has been abrupt. According to industry tracker TrendForce, DRAM prices rose as much as 98% in the first quarter of 2026 and are projected to jump another 58% to 63% in the current quarter.
The immediate market reaction was severe. Apple shares fell nearly 5%, while rival Dell dropped more than 8%. Several analysts noted that Apple’s deep supplier ties have provided some cushion, with competing device makers forced to implement even steeper price increases to cope with the same supply shortages.
For the broader economy, the chip crunch is set to heavily depress device sales. Research firm IDC estimates the smartphone market will see its biggest-ever annual decline of nearly 14% this year, while the PC market is expected to fall 11.3%. A downturn of this scale across smartphones and computers will directly impact European consumer spending and electronics retail this year.
While the iPhone was spared for now, analysts expect that to change soon. “The iPhone isn’t spared. Its hike is coming,” said Nabila Popal, a senior research director at IDC. Popal noted that raising prices on other devices now was an incredibly strategic move to ensure the autumn iPhone launch headlines focus on the value of the new phones rather than price increases.
