Apple and Microsoft raise hardware prices as chip costs climb
The companies cited surging memory and storage costs tied to AI demand, with Apple lifting Mac and iPad prices and Microsoft raising Xbox prices.
By James Whitfield · Staff Writer
3 min read
Apple and Microsoft are raising prices on major consumer hardware lines after memory and storage costs rose sharply, Al Jazeera reported. The companies tied the increases to demand from artificial intelligence data centres, a cost pressure now reaching buyers of laptops, tablets and game consoles.
Apple raised prices on Thursday across its Mac and iPad lineup, according to Al Jazeera. Several widely bought models now cost at least 20 percent more in the United States.
The MacBook Air base model now sells for $1,299, up from $1,099, Al Jazeera reported. The entry MacBook Pro increased to $1,999 from $1,699.
Apple also lifted the base iPad Air price to $749 from $599, according to Al Jazeera. The iPad Pro starts at $1,199, up from $999, while the entry-level MacBook Neo rose to $699 from $599.
The largest listed increase hit the Mac Studio M3 Ultra desktop, according to Al Jazeera. Its price rose to $5,299 from $3,999.
Apple said it had delayed passing higher component costs on to customers but could no longer avoid price increases, Al Jazeera reported. An Apple spokesperson said AI data centre expansion had driven exceptional demand for memory and storage, and said Apple had not seen component costs rise so far so fast.
Apple shares fell more than 6 percent after the price changes, according to Al Jazeera. The report said it was the company’s sharpest drop since US President Donald Trump announced his “liberation day” tariffs in April last year.
Trevor Long, a consumer technology analyst and commentator in Australia, told Al Jazeera the increases are likely to weigh on Apple’s sales. He said the MacBook Neo had stood out partly because of its price and that the new pricing pushes some Apple products closer to rival devices.
Long told Al Jazeera he expects the next year to be difficult for large technology companies. He said the next iPhone pricing will be a key test and estimated Apple could raise iPhone prices by $50 to $150 across the range, depending on the model.
Microsoft also pointed to chip-related costs as it confirmed higher prices for some Xbox consoles, Al Jazeera reported. The company said the 512 GB model will rise by $100 and the 1 TB model by $150.
Microsoft said in a statement cited by Al Jazeera that it had spent recent months working with suppliers to avoid another increase. The company said console storage and memory prices had risen by more than 2.5 times and that it expected them to double again by autumn 2027.
Microsoft said the broader consumer electronics sector is under pressure from component shortages and higher prices, according to Al Jazeera. It said consoles are being hit especially hard because of their reliance on memory and storage components.
This story draws on original reporting from Al Jazeera.