Apple on Thursday raised prices across several iPad and MacBook models, saying it could no longer absorb rapidly rising memory and storage chip costs driven by the global artificial intelligence infrastructure boom.
The price increases affect a range of Apple products, including MacBooks, iPads, HomePod smart speakers and Apple TV devices, but do not extend to the iPhone, the company’s largest source of revenue.
Apple said escalating component costs, particularly for memory chips, had reached a point where continuing to shield consumers from higher expenses was no longer sustainable.
“We have never seen a component price increase this much, this quickly,” Apple said in a statement. “We have shielded our customers from these increases so far, but we have now reached a point where we need to begin raising prices on a number of products.”
Among the most notable increases is the MacBook Neo, Apple’s entry-level laptop introduced earlier this year to compete with affordable Windows and Chromebook devices. The model’s starting price rises from $599 to $699, reducing one of its key competitive advantages in the budget laptop market.
Updated pricing on Apple’s website shows the MacBook Air with 512 gigabytes of storage increasing to $1,299 from $1,099, while the MacBook Pro with 1 terabyte of storage now starts at $1,999, up from $1,699. The iPad Air with 128 gigabytes of storage rises to $749 from $599.
The announcement highlights the growing impact of the AI industry’s massive investment in data centers, which has reshaped the semiconductor market and intensified competition for memory components.
Major memory manufacturers, including Micron, have increasingly prioritized contracts with AI chip producers such as Nvidia, whose demand for advanced hardware continues to accelerate as technology companies expand artificial intelligence capabilities.
Industry analysts say the resulting supply squeeze has driven memory prices sharply higher and created challenges for electronics manufacturers across the consumer technology sector.
“We have never seen a component price increase this much, this quickly,” Apple reiterated, underscoring the severity of the cost pressures.
Shares of Apple fell nearly 5% in early trading following the announcement, while rival PC maker Dell declined more than 8% as investors weighed the broader implications for the technology hardware industry.
Analysts said Apple’s strong supplier relationships and scale had enabled it to delay price increases longer than many competitors, but warned that other manufacturers could face even greater pressure.
“The memory environment is tough and remains structurally tough for the foreseeable future,” said Ben Bajarin, chief executive of technology consulting firm Creative Strategies.
Apple had already warned investors earlier this year that rising memory costs would begin affecting profitability.
During an earnings call in April, Chief Executive Tim Cook said existing inventory had helped cushion the company from higher component prices, but acknowledged the situation was changing rapidly.
“We expect significantly higher memory costs,” Cook told analysts.
He added that while Apple was not providing detailed forecasts beyond the June quarter, the company expected memory-related expenses to have an increasingly significant impact on operations in the months ahead.
Apple did not disclose what additional measures it might pursue to offset higher costs beyond raising retail prices.
“We know this is not welcome news, and we are working tirelessly to find solutions,” the company said Thursday.
Market researchers expect Apple’s pricing actions to reverberate throughout the broader consumer electronics industry.
Some analysts believe iPhone prices could also rise in the coming months if component inflation persists, although Apple has not announced any changes to its smartphone lineup.
“The iPhone isn’t spared; its hike is coming,” said Nabila Popal, senior research director at IDC.
Popal suggested Apple’s decision to announce increases ahead of its annual autumn iPhone launch was strategic, allowing future product announcements to focus on new features rather than pricing.
“It was incredibly strategic for Apple to make the price hike announcements prior to the iPhone fall launch, so the headlines at launch are not the price hikes but the value the new phones bring,” she said.
The pressure originates largely from dramatic increases in dynamic random access memory, or DRAM, a critical component used in nearly all modern electronic devices.
According to industry research firm TrendForce, DRAM prices climbed as much as 98% during the first quarter of 2026 and are expected to rise by another 58% to 63% during the current quarter.
The phenomenon has been dubbed “RAMageddon” by some industry observers, reflecting the unprecedented speed and scale of price increases.
The surge is closely linked to the rapid expansion of AI data centers around the world, with companies racing to secure memory supplies to support increasingly powerful artificial intelligence systems.
Micron disclosed this week that it has secured approximately $22 billion in long-term agreements from customers seeking guaranteed access to memory production.
The resulting supply imbalance is expected to weigh heavily on consumer electronics demand.
IDC forecasts the global smartphone market could experience its steepest annual decline on record this year, with shipments falling nearly 14%, while personal computer sales are projected to decrease by more than 11%.
Apple’s MacBook Neo had emerged as one of the company’s bright spots in recent months, helping support stronger-than-expected sales projections and generating optimism among industry analysts about the PC market.
Its higher price, however, alters the competitive landscape.
At $699, the Neo now loses its previous $100 pricing advantage over Dell’s recently launched XPS 13 model, while also becoming more expensive than several Chromebook offerings from manufacturers such as Lenovo and Asus.
Despite the challenges, analysts say Apple remains better positioned than many rivals to navigate the current component shortage because of its scale, brand strength and supply chain leverage.
Even so, the company’s latest move demonstrates that the economic effects of the artificial intelligence boom are extending far beyond data centers and semiconductor manufacturers, reaching consumers through higher prices on everyday technology products.
As AI investment continues to accelerate, industry observers expect memory supply constraints and pricing pressures to remain a defining issue for electronics makers well into next year, forcing companies across the sector to balance profitability, competitiveness and consumer demand in an increasingly expensive hardware market.
