EconomyJun 26, 2026, 4:28 AM

Apple and Microsoft Raise Product Prices Due to Surging Chip Costs

John Power

Apple and Microsoft have simultaneously raised prices on key products due to soaring memory chip costs, driven especially by AI demand. The increases are commonly 20% or more, with some devices rising by nearly $1,300. Analysts warn the moves could hurt sales and signal a tough year ahead for consumer tech.

11 views

artificial intelligence memory chip price increase Microsoft Apple

Save

Reddit Zalo

Apple and Microsoft have announced significant price increases on several of their best-selling products, citing a sharp rise in memory chip costs amid the artificial intelligence (AI) boom. On June 26, Apple raised prices across its entire Mac and iPad lines, with many popular models seeing hikes of 20% or more.

Specifically, the base MacBook Air now costs $1,299 in the US, up from $1,099. The entry-level MacBook Pro has risen from $1,699 to $1,999. The iPad Air increased from $599 to $749, and the iPad Pro from $999 to $1,199. The Mac Studio M3 Ultra desktop saw the largest jump, climbing from $3,999 to $5,299. Apple’s newest product, the MacBook Neo, also went from $599 to $699.

Apple said it had tried to keep prices stable for consumers until now, but “the time has come to start raising prices.” An Apple spokesperson stated: “The rapid expansion of AI data centers has created a surge in demand for memory and storage. We have never seen component prices rise so much and so quickly.”

Following the price increases, Apple’s stock fell more than 6% — its sharpest drop since US President Donald Trump announced “Liberation Day” tariffs last April. Technology analyst Trevor Long of Australia predicted the price rises would hurt Apple’s sales. “Some products like the MacBook Neo are good, but their competitive advantage comes from price. Now that’s been affected,” he said.

Long believes the coming year will be difficult for leading tech companies, and expects the next-generation iPhone to increase by $50 to $150 depending on the model. On the Microsoft side, the company also cited rising chip costs in its announcement of Xbox console price hikes. Specifically, the 512 GB model rose by $100, and the 1 TB version by $150.

Microsoft said: “We hoped we wouldn’t need to raise prices further and have been working with suppliers for months. Unfortunately, storage and memory component prices have more than doubled, and are expected to double again by fall 2027.” The company noted: “The entire consumer electronics industry is struggling with a component crisis, but the impact is especially severe on gaming consoles.”