Apple and Microsoft Raise Device Prices as AI-Driven Memory Chip Costs Surge
Growing demand for memory and storage components driven by AI expansion has pushed Apple and Microsoft to increase prices across several flagship devices, with some products seeing hikes of more than 20 percent.
The rapid expansion of artificial intelligence (AI) technologies is creating new pressure across the global technology supply chain, particularly in memory and storage components. In response to rising production costs, Apple and Microsoft have increased prices for several of their most popular devices.
According to a report by the BBC, Apple recently announced revised pricing across selected Mac and iPad models, with some devices recording price increases exceeding 20 percent.
Under the updated pricing structure in the United States, the base model MacBook Air now starts at $1,299, up from $1,099. Meanwhile, the entry-level MacBook Pro has increased from $1,699 to $1,999.
Apple has also revised prices across its iPad lineup. The starting price of the iPad Air has risen from $599 to $749, while the iPad Pro now begins at $1,199 instead of $999. Additionally, Apple’s entry-level MacBook Neo has increased from $599 to $699.
The sharpest increase was observed in the Mac Studio M3 Ultra desktop computer, which jumped from $3,999 to $5,299.
Apple stated that it had previously absorbed rising component costs to minimize the impact on consumers but has now reached a point where price adjustments became unavoidable.
A company spokesperson said the rapid expansion of AI data centers has caused unprecedented demand for memory and storage infrastructure, resulting in unusually sharp cost increases.
Following the announcement, Apple shares dropped by more than six percent in market trading.
Microsoft has also responded to increasing component costs by raising prices of its Xbox gaming consoles. The company increased prices by $100 and $150 for the 512GB and 1TB variants respectively.
Microsoft noted that despite efforts to explore alternatives with suppliers, storage and memory costs for gaming hardware have risen by more than two and a half times. The company warned that the market pressure could intensify further by 2027.
Industry analysts believe the accelerating global investment in AI infrastructure could continue to reshape pricing dynamics across the broader consumer electronics market.
//DBTech/NA/MI//
