Apple raises MacBook and iPad prices as memory costs surge amid AI boom

Highlights

• Apple raised prices on multiple MacBook and iPad models.
• The company cited soaring memory and storage costs.
• Apple shares fell more than 6 per cent after the announcement.
• AI data center demand has sharply increased component prices.
• More product price increases could follow in the coming months.

Apple announced price increases for several MacBook and iPad models on Thursday, marking its first major effort to pass rising memory and storage costs on to consumers.

The company said the technology industry is facing unprecedented pressure as demand for artificial intelligence infrastructure continues to grow. According to Apple, the rapid expansion of AI data centers has created a huge increase in demand for memory and storage components, pushing prices significantly higher.

As part of the changes, the entry-level MacBook Neo will increase from $599 to $699. The MacBook Air with 512GB of storage will rise from $1,099 to $1,299. The MacBook Pro with 1TB of storage will increase from $1,699 to $1,999.

Apple is also raising prices on its iPad lineup. The iPad Air with 128GB of storage will move from $599 to $749. The iPad Pro Wi-Fi model with 256GB of storage will increase from $999 to $1,199.

Apple’s online store briefly went offline Thursday morning before returning with the updated prices.

In a statement, the company said the consumer electronics industry is dealing with a challenge unlike anything it has seen before. Apple noted that memory and storage component prices have risen at an extraordinary pace and that higher prices have become difficult to avoid.

The company added that it has reached a point where it must begin increasing prices on some products. Apple also suggested that additional price increases could happen in the future if component costs remain elevated.

Last week, Apple CEO Tim Cook told The Wall Street Journal that the company could no longer fully absorb the rising costs tied to the AI boom. He described the situation as a rare and extreme event and said he had never seen anything similar during his decades in the industry.

Investors reacted negatively to the news. Apple shares dropped more than 6 per cent on Thursday, marking the company’s largest one-day decline since April 2025.

Industry research firm Counterpoint Research reported that memory and storage prices have quadrupled during the past three quarters. The increase has been driven largely by suppliers shifting production toward high-bandwidth memory used in AI servers.

The trend has benefited memory manufacturers such as Micron, which recently reported a sharp jump in revenue and profit margins due to strong demand from the AI market.

Apple has often managed rising costs by adjusting its product lineup instead of directly increasing prices. The company has previously removed lower-priced models and encouraged customers to purchase devices with more storage or memory.

Analysts expect the AI boom to continue influencing Apple’s pricing strategy. Research firm IDC believes future devices will include more memory to support advanced AI features and Apple Intelligence tools. The firm expects Apple’s average selling price to rise this year as customers move toward higher-end products and as the company prepares to introduce new premium devices, including a foldable iPhone.