4x Hike in Memory Price Forces Rise in Price of Mac
and iPad
The tech giant cited the soaring costs of
memory and storage chips as it increased prices more than $200 on some devices.
1.
Price Increase Announced: Apple has increased the prices of several Mac
and iPad models due to the sharp rise in the cost of memory and storage
chips.
2.
Reason for Price Hike: The increase is driven by the AI boom,
which has significantly increased demand for memory and storage chips used in
AI hardware and data centres.
3.
MacBook Pro Price: The base MacBook Pro price has increased:
o
From USD 1,699 to USD 1,999
o
Increase: USD 300
4.
MacBook Neo Price: The entry-level MacBook Neo now costs:
o
USD 699, up from USD 599
o
Increase: USD 100
5.
iPad Price Increases:
o
iPad Air: Increased from USD 599 to USD 749 (+USD
150)
o
iPad Pro: Increased from USD 999 to USD 1,199
(+USD 200)
6.
Supply Chain Pressure: Despite its extensive global supply chain, Apple
has been affected by the worldwide shortage of memory and storage chips.
7.
AI Driving Demand: AI chip manufacturers such as Nvidia and Advanced
Micro Devices are purchasing large volumes of memory components for AI
processors used in data centres.
8.
Shift by Memory Manufacturers: Memory chip producers such as Micron Technology
are prioritising higher-margin chips for AI data centres instead of consumer
electronics, reducing the supply of consumer-grade memory chips.
9.
Rising Component Costs: According to analyst estimates:
o
Prices of memory and storage chips have quadrupled
over the past year.
o
Costs are expected to continue rising.
10. Industry-Wide
Trend: Apple is
not alone in passing on higher costs:
o
Microsoft also increased prices of its Surface
laptops in April.
11. Apple's
Earlier Warning: CEO Tim
Cook had previously warned investors that:
o
Memory costs would rise significantly during the
June quarter.
o
Higher memory costs would increasingly affect
Apple's business.
o
Profit margins were expected to decline slightly.
12. Other
Products Affected: Apple
also increased prices for:
o
HomePod smart speaker.
o
Vision Pro mixed reality headset.
13. Unusual
Timing: Unlike
Apple's usual practice of raising prices alongside new product launches, these
increases were implemented mid-product cycle, reflecting extraordinary
component cost pressures.
Key Facts for Exams
·
Company: Apple
·
Reason for Price Increase: AI-driven surge in memory and storage chip costs
·
Major Beneficiaries of Chip Supply: Nvidia and Advanced Micro Devices
·
Memory Chip Producer Mentioned: Micron Technology
·
MacBook Pro Price: USD 1,699 → USD 1,999
·
MacBook Neo Price: USD 599 → USD 699
·
iPad Air Price: USD 599 → USD 749
·
iPad Pro Price: USD 999 → USD 1,199
·
Memory Chip Prices: Approximately 4× increase over the past year
·
Other Company Raising Device Prices: Microsoft (Surface laptops)
·
Additional Apple Products with Price Hikes: HomePod and Vision Pro
·
Market Impact: Apple's share price fell by as much as 6%
following the announcement.
[ABS News Service/26.06.2026]
Apple
raised the prices of its Macs and iPads on Thursday, citing the soaring costs of
memory and storage chips as the artificial intelligence boom has created a frenzy
for the components.
Apple
increased prices on some laptop and tablet models $200 or more. A base model of
the MacBook Pro, for example, now costs $1,999, up from $1,699. Apple’s entry-level
laptop, the MacBook Neo, now costs $699, $100 higher than when it was unveiled in
March.
The
price of an iPad Air increased $150 to $749, while the price of an iPad Pro jumped
$200 to $1,199.
The
increases show that even Apple, with its sprawling supply chain, is not immune to
a global shortage in memory and storage chips. A.I. chip makers like Nvidia and
Advanced Micro Devices have demanded more of the components for their own chips,
which are then used in data centers for developing and
running A.I. systems.
The
surge in demand has led memory chip manufacturers like Micron to focus on producing
for data centers, which tend to use more expensive chips
than consumer electronics. As a result, those companies are making more money but
shipping fewer consumer-grade chips, which have become more expensive.
Memory
and storage chip prices have quadrupled over the past year, according to analyst
estimates, and the cost of those components is expected to continue to rise.
Those
costs are now being passed on to consumers. Microsoft raised prices for its Surface
laptops in April.
“We
have never seen a component price increase this much, this quickly,” a spokesman
for Apple said in a statement. “We have now reached a point where we need to begin
raising prices.”
Apple’s
share price fell as much as 6 percent on Thursday.
Apple’s
chief executive, Tim Cook, said during an investor call in April that the company
expected “significantly higher memory costs” for the quarter, which runs through
June.
“Beyond
the June quarter, we believe memory costs will drive an increasing impact on our
business,” Mr. Cook said on the call.
The
company also said it expected its profit margins to decline slightly for the quarter.
Apple
also raised the prices of its HomePod speaker and Vision Pro mixed reality headset
on Thursday.
The
timing for the price increases was unusual. Apple typically raises prices when it
releases new or refreshed products. In September, Apple released new iPhones and
raised the prices for some models $100.