Apple has increased prices for several iPad, MacBook, Apple TV, and HomePod models after months of absorbing rising costs for memory and storage chips driven by the AI industry’s massive data center expansion.
The company said it could no longer shield customers from the sharp increase in component prices, although iPhone prices remain unchanged for now.
One of the biggest changes affects the MacBook Neo, Apple’s most affordable laptop designed to compete with budget Windows and Chromebook devices. Just months after its launch, the starting price has increased from $599 to $699. Other products have also seen significant jumps. The MacBook Air with 512GB of storage now costs $1,299 instead of $1,099, while the 1TB MacBook Pro has risen from $1,699 to $1,999. The iPad Air with 128GB of storage now starts at $749, up from $599. Apple has also raised prices for both HomePod models and the Apple TV streaming device.
The price increases reflect an industry-wide shortage of memory chips. Manufacturers such as Micron have been prioritizing supplies for AI companies building powerful data centers, including Nvidia, leaving fewer chips available for smartphone and PC makers. Apple said component costs have climbed faster than ever before, forcing the company to pass some of those expenses on to customers after months of protecting buyers from higher prices.
Despite Apple’s strong supplier relationships, analysts say no consumer electronics company is immune to the ongoing memory price surge. Several believe competing PC manufacturers could face even greater pricing pressure because they lack Apple’s purchasing power and supply chain advantages.
Apple had already warned investors earlier this year that rising memory costs would begin affecting its profit margins. CEO Tim Cook said the company expected significantly higher memory expenses beyond the June quarter, and Thursday’s announcement marks the first major response to those growing costs.
Industry analysts also expect iPhone prices to increase later this year. Some believe Apple intentionally announced these product price hikes ahead of the next iPhone launch so the focus remains on the new devices’ features rather than higher prices.
According to market tracker TrendForce, prices for DRAM memory chips nearly doubled during the first quarter of 2026 and are expected to climb by another 58% to 63% this quarter. The surge, often referred to as “RAMageddon,” has been fueled by AI companies signing long-term supply agreements with memory manufacturers to secure chips for expanding AI infrastructure.
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The rising cost of memory is expected to impact the broader electronics market throughout the year. Research firm IDC forecasts one of the largest annual declines in smartphone sales, while PC shipments are also expected to fall. Apple’s MacBook Neo had been one of the few bright spots in the market, but its higher price now removes its cost advantage over Dell’s recently launched $699 XPS 13 and makes it more expensive than several Chromebook models from Lenovo and Asus.
