Apple raises iPad and MacBook prices, blaming cost of chips amid AI boom
Summary
Apple raised prices on its iPad and MacBook products due to higher costs for memory and storage chips. This price increase is linked to strong demand for chips from companies building artificial intelligence (AI) data centers. Apple has not yet raised iPhone prices but may do so soon.Key Facts
- Apple increased the starting price of its lowest-cost MacBook, the Neo, from $599 to $699.
- Prices for a MacBook Air with 512GB storage rose by $200, and a MacBook Pro with 1TB went up by $300.
- Other Apple products like the HomePod smart speaker and Apple TV also saw price increases.
- The price of key computer memory chips rose by nearly 100% in early 2026 and is expected to increase by 58% to 63% this quarter.
- The rise in chip prices is driven by AI data center demand, with companies like Nvidia signing long-term contracts with chip makers.
- Apple has tried to protect customers from these cost increases but could no longer do so.
- Analysts predict iPhone prices will rise soon and say Apple timed its announcement ahead of the fall iPhone launch.
- The high chip prices are expected to reduce smartphone and PC sales worldwide this year, with smartphone sales predicted to drop nearly 14% and PC sales 11.3%.
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