Apple cites soaring memory chip costs driven by AI data centres as prices rise across key devices
Apple has increased the prices of several MacBook and iPad models, blaming soaring memory chip costs driven by the rapid expansion of artificial intelligence data centres. The technology giant warned that additional price increases could follow if supply pressures continue.
The price changes took effect on Thursday and affect some of Apple’s most popular laptops and tablets. The company said it could no longer absorb the rising cost of memory and storage components, forcing it to pass part of the increase on to customers.
Among the largest increases, the iPad Air now starts at £749, up from £599, representing a 25% rise. The entry-level 14-inch MacBook Pro has increased from £1,699 to £1,999, while the 16-inch model now starts at £2,999 instead of £2,699. The MacBook Air has also risen by £200, taking its starting price from £1,099 to £1,299.
Apple’s recently launched MacBook Neo now costs £699, compared with its previous starting price of £599. Meanwhile, the iPad Pro begins at £1,199, up from £999 before the latest pricing changes. The company has also increased prices across several other hardware products in response to the same supply challenges.
Apple attributed the increases to an unprecedented surge in demand for memory and storage chips. According to the company, the rapid build-out of AI data centres worldwide has placed extraordinary pressure on suppliers, significantly increasing the cost of key components used in consumer electronics.
In a statement, Apple said it had attempted to shield customers from rising costs for as long as possible but had reached a point where price increases were unavoidable. The company acknowledged the changes would disappoint customers and said it was continuing to search for ways to ease the impact.
Chief executive Tim Cook, who is due to become Apple’s executive chairman later this year before handing over the CEO role to John Ternus on 1 September, had already warned that higher prices were becoming inevitable because of the ongoing memory shortage. He said Apple had worked hard to absorb higher component costs but described the situation as unsustainable.
The shortage has been fuelled by explosive demand from companies building AI infrastructure. High-performance memory chips used in servers, smartphones and personal computers have become increasingly scarce as technology companies invest billions in expanding AI capabilities.
The global market for advanced memory remains dominated by SK Hynix, Samsung and Micron Technology, all of which have benefited from surging demand linked to artificial intelligence. Micron recently reported that its quarterly profits had more than doubled, highlighting the strength of the current market for memory products.
Although Apple’s latest pricing changes do not affect the iPhone, industry observers expect future models could also become more expensive if supply constraints continue. Apple has indicated that the current increases may only be the beginning if component costs remain elevated.
Investors reacted negatively to the announcement, with Apple’s shares falling by more than 6% during Thursday’s trading session as markets assessed the potential impact of higher prices on consumer demand. Analysts believe the increases could weigh on sales of premium consumer electronics at a time when buyers are already facing higher living costs.
The announcement underlines how the global AI boom is reshaping the technology industry. As companies race to secure advanced memory and storage components for AI data centres, manufacturers of consumer devices are facing mounting production costs, leaving many with little choice but to raise prices.