Apple raises Mac and iPad prices as AI strains memory chip supply
Apple says booming AI data center demand has pushed up memory and storage costs, forcing higher prices on Macs and iPads.
By Daniel Okafor · Business Editor
2 min read
Apple raised prices Thursday on several Mac and iPad models, saying AI-driven demand for memory and storage has made key components more expensive. The move matters for buyers because the increases add $100 to $300 to some listed prices, and IDC analyst Nabila Popal said iPhone hikes may come later this year.
Apple attributed the price changes to a shortage of memory chips tied to the rapid buildout of artificial intelligence data centers. In a written statement, the company described the demand spike as an “unprecedented challenge” for makers of consumer electronics.
“The rapid expansion of AI data centers has created an extraordinary surge in demand for memory and storage. We have never seen a component price increase this much, this quickly,” Apple said in the statement.
New prices for Macs and iPads
Apple said the entry-level MacBook Neo now costs $699, up from $599. The company said the 512 gigabyte MacBook Air rose to $1,299 from $1,099, while the one terabyte MacBook Pro increased to $1,999 from $1,699.
The company also raised prices on iPads. Apple said the 128 gigabyte iPad Air now costs $749, up from $599, and the 256 gigabyte iPad Pro Wifi now costs $1,199, up from $999.
Apple said it had absorbed higher component costs for customers before reaching the point where price increases were needed across selected products. “We know this is not welcome news, and we are working tirelessly to find solutions,” the company said.
Analyst sees risk for iPhones
Popal, the IDC analyst, said the latest Mac and iPad increases exceeded what she had expected. She said that could point to larger-than-expected iPhone price increases later this year, potentially as much as $200 for the iPhone Pro and Pro Max models.
“I think the days of $50 price increases are over,” Popal said.
The Associated Press reported that Apple shares fell $13.29, or 4.5%, to $279.88 on Thursday afternoon after the announcement. Apple has not announced iPhone price changes, according to the same report.
The company’s explanation ties consumer device pricing to the buildout of AI infrastructure, where demand for memory and storage is putting pressure on chip supplies. Apple said that pressure has now reached its Mac and iPad lines.
This story draws on original reporting from Fortune.