Apple has increased prices for several products, including iPads and MacBooks. Apple said it can no longer absorb the sharp rise in memory and storage chip costs and has started passing some of those costs on to customers. The price increase does not affect iPhones. Reuters reported that Apple’s biggest product, the iPhone, remains unchanged for now.
Apple’s cheapest laptop, the MacBook Neo, is becoming more expensive. The starting price of the MacBook Neo has gone up from $599 to $699, only a few months after it launched. The MacBook Neo was designed to compete with low-cost Windows laptops and Chromebooks. The laptop was aimed at helping Apple gain market share in the budget computer segment.
Apple faces rising chip costs
The price hikes show that even Apple is feeling pressure from rising chip costs. Apple is known for having one of the strongest supply chains in the tech industry, but it still could not avoid the impact of higher memory prices, as noted by Reuters report. The main reason behind the increase is a shortage of memory chips. Memory manufacturers have been focusing more on supplying AI companies, leaving less supply available for consumer electronics makers.
Companies building AI data centers are buying huge amounts of memory chips. Firms such as Nvidia have been placing large orders, increasing demand across the industry. Memory makers are prioritizing AI customers because those orders are more profitable. This has helped memory companies earn record profits while creating supply pressure for smartphone and PC manufacturers.
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Apple said the increase in component costs has been unusually severe. The company stated that it had never seen component prices rise “this much, this quickly.” Apple said it tried to protect customers from higher costs for as long as possible, as stated by Reuters. The company said it had absorbed the extra expenses until it became impossible to continue doing so. Apple acknowledged that customers will not be happy about the higher prices. The company said it is working hard to find solutions to the problem.
Which Apple products became more expensive?
The MacBook Air with 512GB storage now costs $1,299. The MacBook Pro with 1TB storage now costs $1,999. The iPad Air with 128GB storage saw a major jump in price which has now increased from $599 to $749.
Apple also raised prices on HomePod smart speakers, both versions of the smart speaker received price increases. Apple TV streaming devices also became more expensive, prices were increased for the Apple TV set-top box lineup.
Also read: Apple may raise iPhone prices as AI chip costs surge, Tim Cook’s big warning
Why are memory prices rising so fast?
Prices for DRAM memory chips have surged dramatically. Industry tracker TrendForce said DRAM prices jumped as much as 98% in the first quarter of 2026. Memory prices are expected to rise even more. Reuters reported that TrendForce forecasts another 58% to 63% increase during the current quarter. DRAM is used in almost every modern electronic device. Smartphones, computers, tablets and many other gadgets depend on these chips.
Some industry experts have nicknamed the crisis “RAMageddon.” The term reflects the extreme rise in memory prices. The AI boom is the main driver behind the surge. Rapid construction of AI data centers has created huge demand for memory chips. Memory suppliers are signing long-term contracts with AI companies.
Memory companies are rushing to expand production capacity. Manufacturers are trying to keep up with growing demand from AI customers. Micron recently reported massive long-term commitments from customers. The company has secured $22 billion in commitments for future memory supplies, as noted by Reuters report.
