Apple, Microsoft Raise Mac, iPad, Xbox Prices After Memory Chip Costs Rise

Apple raised prices on multiple Mac and iPad models Thursday, citing a sharp increase in memory chip costs driven by artificial intelligence demand. The entry-level MacBook Neo now costs $699, up from $599. The 512-gigabyte MacBook Air rose to $1,299 from $1,099, and the one-terabyte MacBook Pro increased to $1,999 from $1,699.

The 128-gigabyte iPad Air is now $749, up from $599, while the 256-gigabyte iPad Pro Wi-Fi model costs $1,199, up from $999. Apple said it had shielded customers from component price surges until now but reached a point where it must raise prices on several products. “We have never seen a component price increase this much, this quickly,” the company stated.

It described the rapid expansion of AI data centers as creating an extraordinary surge in demand for memory and storage. Shares of Apple fell $13.29, or 4.5 percent, to $279.88 on Thursday afternoon. IDC analyst Nabila Popal said the price hikes were higher than she had expected.

“I think the days of $50 price increases are over,” she said. Analysts expect iPhone prices to rise later this year.