Apple is increasing prices on select iPads and MacBooks after facing rising costs for memory and storage chips, highlighting how the AI-driven surge in demand for data center hardware is impacting the broader consumer electronics market. The company said it can no longer absorb the higher component costs as memory manufacturers prioritize supplying AI chipmakers, tightening availability for PC and mobile device makers. While the price increases do not affect the iPhone lineup, they signal that even Apple is feeling the strain of the global semiconductor supply crunch.
The updated pricing raises the entry-level MacBook Neo from $599 to $699, just months after its release. Other notable increases include the MacBook Air with 512GB of storage, which now starts at $1,299 instead of $1,099, and the MacBook Pro with 1TB of storage, which climbs from $1,699 to $1,999. Apple’s iPad Air with 128GB of storage also jumps from $599 to $749, with additional models seeing similar adjustments.
Apple said it has spent months shielding customers from rising hardware costs but has now reached a point where price increases are unavoidable. CEO Tim Cook previously acknowledged that escalating memory and storage expenses would eventually force the company to pass some of those costs on to consumers.
The surge in pricing is largely being driven by booming demand for AI infrastructure. Memory manufacturers, including Micron, have shifted production toward high-margin AI customers such as Nvidia, leaving fewer chips available for smartphone and PC manufacturers. As a result, companies across the industry are facing higher component costs and slowing demand for traditional consumer devices.