Apple, Microsoft Hike Prices as AI Drives Memory Chip Shortage
Apple said memory and storage costs have quadrupled in three quarters, forcing price increases of 15% to 25% on Macs and iPads.
- On Thursday, June 25, 2026, Apple raised prices across its Mac, iPad, and Vision Pro lineups, attributing the increases to surging memory and storage component costs driven by AI data center demand.
- Surging demand from AI data center construction caused memory chip costs to skyrocket, prompting CEO Tim Cook to describe the shortage as a "hundred-year flood"; Microsoft similarly raised Xbox console prices Thursday.
- Apple increased starting prices for Mac and iPad models by $100 to $300, while Microsoft added $100 to $150 to Xbox console SKUs and discontinued its 2 TB model.
- Investors reacted negatively, with Apple stock falling nearly 6% on Thursday and wiping out about $250 billion in market value, while analysts warn hardware sales may face pressure this year.
- While iPhone pricing remains unchanged, analysts expect potential hikes for the iPhone 18 Pro lineup later this year as memory costs are projected to double by the end of 2027.
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527 Articles
Apple And Microsoft Hike Base Prices Of Their Devices
Axios reports: People spend a lot of time on their devices. The AI boom means they will also be spending more for them. The enormous sums of money going into the AI race are driving up costs for resources and components throughout the economy. That’s now becoming increasingly apparent to ordinary Americans who might have thought that AI’s impact would be primarily on their jobs. Apple provided the clearest evidence yet Thursday, raising prices b…
Apple raised the prices of its MacBook and iPad this week, citing the rise in the cost of components, including memory chips.The news caused a 6% drop in the company's shares on Thursday, the biggest individual loss among S&P 500 companies on the day, and dragged Nasdaq Composite to its fourth consecutive day of declines.The adjustment comes at a time when consumers are already facing inflationary pressures in multiple categories.For anyone plan…
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