Apple raises MacBook, iPad prices as AI demand drives up memory costs

SAN FRANCISCO: Apple has raised prices of selected MacBook, iPad, HomePod and Apple TV models, saying rising memory and storage chip costs linked to AI data centre demand have increased pressure on its hardware business.

The price increase does not apply to the iPhone, Apple’s largest revenue driver, but analysts expect iPhone prices may also rise in the coming months if memory costs remain elevated.

The starting price of the MacBook Neo, Apple’s lowest-priced laptop launched to compete with affordable Windows and Chromebook devices, has increased to $699 from $599.

Apple also raised the price of the MacBook Air with 512GB storage to $1,299 from $1,099, while the MacBook Pro with 1TB storage increased to $1,999 from $1,699, according to prices updated on the company’s website.

The iPad Air with 128GB storage now costs $749, up from $599. Prices of both versions of the HomePod smart speaker and Apple TV set-top box were also increased.

Apple shares fell nearly 5 per cent after the announcement, while Dell dropped more than 8 per cent.

The increase reflects pressure on consumer electronics companies as memory producers prioritise orders from AI chipmakers, including Nvidia, amid rising demand for data centre hardware.

Memory companies such as Micron have benefited from the shift, but tighter supply has raised costs for smartphone, tablet and PC makers.

Apple had said in April that existing inventories helped protect its margins, but warned that memory costs would begin affecting profitability by the end of June. Chief Executive Tim Cook had also told analysts that memory costs would have a growing impact beyond the June quarter.

Analysts said rival device makers may face steeper price increases than Apple because the company’s supplier relationships have helped soften part of the cost impact.

Prices of dynamic random access memory, used across modern electronic devices, rose by as much as 98 per cent in the first quarter of 2026, according to TrendForce. The research firm expects prices to increase another 58 per cent to 63 per cent in the current quarter.

The surge has been driven by AI data centre construction, with companies such as Nvidia signing long-term supply agreements with memory manufacturers.

Micron said on Wednesday it had secured $22 billion in long-term commitments from customers seeking guaranteed memory supplies.

Higher component costs are also expected to weigh on device sales. IDC estimates the smartphone market will record its largest-ever annual decline of nearly 14 per cent this year, while the PC market is expected to fall 11.3 per cent.

The MacBook Neo had been one of Apple’s recent bright spots after its March launch, supporting the company’s stronger sales forecast for the June quarter.

However, the new $699 price removes its earlier $100 price advantage over Dell’s $699 XPS 13 laptop, which was launched last month to compete with the Neo. The increase also makes the Neo more expensive than some Chromebooks from Lenovo and Asus.