Apple raises Mac, iPad prices as AI-driven chip shortage pushes up component costs

APPLE has raised prices for its Mac and iPad product lines after an artificial intelligence-driven shortage of memory chips sent component costs sharply higher, marking one of the company's most significant hardware price increases in recent years.

The technology giant said soaring demand for memory and storage chips, driven by the rapid expansion of AI data centres worldwide, had created unprecedented supply pressures across the consumer electronics industry, forcing the company to pass on higher costs to customers.

"The rapid expansion of AI data centers has created an extraordinary surge in demand for memory and storage. We have never seen a component price increase this much, this quickly," AP cited Apple saying in a statement.

Among the revised prices, the entry-level MacBook Neo now costs US$699, up from US$599, while the 512GB MacBook Air has risen to US$1,299 from US$1,099. The 1TB MacBook Pro now carries a price tag of US$1,999, compared with its previous price of US$1,699.

Apple also increased prices across its tablet range, with the 128GB iPad Air rising from US$599 to US$749 and the 256GB Wi-Fi iPad Pro increasing from US$999 to US$1,199.

The company said it had previously absorbed much of the increase in component costs but had now reached a point where price adjustments were unavoidable.

"We have now reached a point where we need to begin raising prices on a number of products, including today's increases for iPad and Mac. We know this is not welcome news, and we are working tirelessly to find solutions," Apple said.

Industry analysts believe the latest increases could foreshadow higher prices for Apple's flagship smartphones later this year.

IDC analyst Nabila Popal said the scale of the Mac and iPad price adjustments exceeded expectations, suggesting forthcoming iPhone price increases may also be larger than previously anticipated.

"I think the days of US$50 price increases are over," she said.

Popal estimated that prices for premium iPhone Pro and Pro Max models could rise by as much as US$200 if component costs remain elevated.

Investors reacted negatively to the announcement, with Apple shares falling US$13.29, or 4.5 per cent, to close at US$279.88, reflecting concerns over the potential impact of higher prices on consumer demand and future sales. - June 26, 2026