Apple raises prices on Mac and iPad lines as memory costs surge

Apple raised prices on MacBook Neo, MacBook Air, iMac, and iPad models Thursday, citing a rapid increase in memory and storage costs driven by AI data-center expansion. The company said it had absorbed earlier price increases but reached a point where it needed to pass costs along.

Price changes took effect immediately and appeared on Apple's online store the same day. Apple closed the trading day down 6.12 percent, erasing about $265 billion in market value. The company's market capitalization remained above $4 trillion.

Price changes and product scope The MacBook Neo increased $100, the 13-inch MacBook Air increased $200, the 11-inch iPad increased $150, and the base iPad increased $100. An Apple TV streaming box rose $70 to $199. Apple did not raise prices on the iPhone, Apple Watch, or AirPods. The company stated it is working to find solutions to the component cost increases.

Industry context Microsoft's Xbox division also announced price increases Thursday, raising some models by $100 and higher-memory models by $150. The company said console storage and memory prices have risen more than 2.5 times and could double again by fall 2027.

The memory market is led by Samsung, SK Hynix, Kioxia, Micron Technology, and Sandisk. Limited supply and expanding AI data-center construction have tightened availability. Last week the company told The Wall Street Journal that price increases were unavoidable given the memory situation.

Analysts at Evercore and JPMorgan Chase noted the size of the increases exceeded earlier expectations and could affect sales.