Lead

Apple has raised prices across its MacBook, iPad, and other product lines, citing a surge in memory chip costs driven by the boom in artificial intelligence. The increases, announced on Thursday, follow warnings from outgoing CEO Tim Cook and mark a concrete change after months of rising component prices.

Microsoft has also lifted prices on its Xbox consoles, as reported by Al Jazeera. The moves come as memory chip costs have risen sharply, with memory makers reportedly prioritizing orders from AI chipmakers, according to The Guardian.

Coverage comparison

Reports from Al Jazeera, BBC, Dawn, and The Guardian – the outlets with coverage examined for this article – describe the price hikes across several Apple products. Al Jazeera reported that the base model MacBook Air now retails in the United States for $1,299, up from $1,099, and that the lowest-spec MacBook Pro rose from $1,699 to $1,999. Dawn reported the 14-inch MacBook Pro now retails for $2,000, up from $1,700, and the iPad Air increased from $600 to $750. The Guardian reported that the MacBook Air with 512 gigabytes went up $200 and a MacBook Pro with 1 terabyte of storage became $300 more expensive, and that the entry-level MacBook Neo, the company's lowest priced laptop, saw its starting price rise from $599 to $699.

Several outlets also covered the Australian market. The Guardian reported that in Australia, the 13-inch MacBook Air now starts at $2,099, up from $1,799, and the MacBook Pro 14-inch starts at $3,199. The iPad starts at $749, up from $599, and the iPad mini at $949, up from $799. Australian retailers like Officeworks and JB Hi-Fi had not yet passed on the price increases, according to The Guardian.

The price hikes have hit Apple's stock, with Dawn reporting shares fell more than 4.7% in morning trade, while Al Jazeera reported a decline of more than 6%.

Key claims

  • Cause: The price rises are attributed to soaring memory and storage chip costs caused by the rapid expansion of AI data centers. Apple's spokesperson stated, "The rapid expansion of AI data centres has created an extraordinary surge in demand for memory and storage." They added, "We have never seen a component price increase this much, this quickly."
  • Cook's comments: Tim Cook, Apple's outgoing CEO, told The Wall Street Journal that price increases were "unavoidable" and compared the surge to a "hundred-year flood." He said the company had been "trying to shield customers from the increases" but the situation had become "unsustainable."
  • Specific increases: The price rises range from $30 to $300, as reported by Dawn. The Apple TV streaming device rose from $130 to $200, according to Dawn. The Mac Studio M3 Ultra saw the steepest rise, from $3,999 to $5,299, per Al Jazeera.
  • Impact on smartphone market: The average selling price of smartphones globally is expected to rise by around 20% in 2026 to an all-time high, according to research firm Omdia, as reported by the BBC. Omdia's analyst Chiew Le Xuan said Apple's new phones are likely to cost up to $150 more than the iPhone 17s, as the firm is expected to upgrade specifications for AI features.
  • Analysts' expectations: Nabila Popal, senior research director at IDC, told The Guardian that the iPhone is not spared: "The iPhone isn't spared. Its hike is coming." She also said it was "incredibly strategic" for Apple to announce hikes before the iPhone fall launch.

Perspectives

Apple

Apple's spokesperson emphasized the company had "shielded our customers from these increases so far" but could no longer do so. Tim Cook told the WSJ that memory pricing and supply needed to "return to reasonable levels for consumer products."

Analysts

Consumer tech analyst Trevor Long said he expects the price increases to affect Apple's sales, according to Al Jazeera. Nabila Popal noted that Apple's deep supplier ties had provided some cushion, but that some rivals had been forced to raise prices more sharply.

Microsoft

Microsoft raised its Xbox prices overnight, as reported by The Guardian, highlighting that Apple is not the only company passing on costs.

Samsung (perspective)

A Dawn article explores how Samsung might benefit from Apple's price increase for its first foldable iPhone. Nabila Popal told The Korea Herald she expects Samsung to raise flagship foldable prices by about $100, staying "significantly lower" than Apple's first foldable, which IDC sees arriving near a "massive sticker price of $2,500." This could make Samsung's prices look more reasonable, according to Dawn.