Apple has increased prices across several Mac and iPad models as soaring global memory chip costs, fuelled by the rapid expansion of artificial intelligence (AI) infrastructure, continue to pressure consumer electronics manufacturers, according to a Reuters report.
The price adjustment reflects the growing impact of the AI industry’s aggressive investment in data centres, which has significantly tightened the supply of memory and storage chips used in laptops, tablets and other consumer devices. While Apple has so far absorbed much of the additional cost, the company said it could no longer continue shielding customers from the sustained increase in component prices.
In a statement cited by Reuters, Apple said the unprecedented surge in memory costs had forced it to revise pricing across a number of products.
“We have never seen a component price increase this much, this quickly. We have shielded our customers from these increases so far, but 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,” the company said.
The move leaves Apple’s flagship iPhone lineup untouched for now, although industry analysts believe smartphone price increases could follow later this year if supply pressures persist.
Among the products affected is the MacBook Neo, Apple’s entry-level laptop introduced earlier this year to compete with budget Windows PCs and Chromebooks. Its starting price has increased from $599 to $699, only months after its launch.
Other adjustments include the MacBook Air with 512GB of storage, which now sells for $1,299 instead of $1,099, while the MacBook Pro equipped with 1TB of storage has risen from $1,699 to $1,999. Apple also increased the price of the iPad Air with 128GB of storage from $599 to $749, alongside higher prices for HomePod smart speakers and Apple TV streaming devices.
Reuters reported that the announcement weighed on investor sentiment, with Apple’s shares falling nearly five percent, while shares of rival Dell declined by more than eight percent.
The rapid rise in memory costs has been largely attributed to semiconductor manufacturers redirecting production capacity toward AI-focused customers. Companies such as Micron have increasingly prioritised supply agreements with AI chipmakers including Nvidia, where demand for high-performance memory has accelerated alongside the global expansion of AI computing infrastructure.
That shift has reduced the availability of memory components for manufacturers of smartphones, tablets and personal computers, forcing many electronics companies to absorb higher production costs or pass them on to consumers.
Several analysts told Reuters that Apple’s extensive supplier relationships have enabled it to delay price increases longer than many competitors, but warned that other device makers may have little choice but to introduce even steeper price hikes.
Ben Bajarin, chief executive of technology consultancy Creative Strategies, said the industry is unlikely to see relief anytime soon.
“The memory environment is tough and remains structurally tough for the foreseeable future,” he said.
Apple had previously warned investors that rising memory prices would eventually affect its financial performance. During its earnings call in April,Tim Cook, its chief executive officer,said existing inventory had helped protect the company’s profit margins in recent months, but acknowledged that the impact of higher component costs would become increasingly visible.
“We expect significantly higher memory costs,” Cook told analysts, adding that the pressure would continue beyond the June quarter.
The company has not disclosed any additional measures beyond the latest price increases to offset rising production costs, saying only that it continues to explore ways to minimise the impact on customers.
Market researchers expect memory prices to remain elevated as AI infrastructure spending continues to reshape the semiconductor industry. According to Reuters, citing market research firm TrendForce, prices for dynamic random access memory (DRAM), a critical component used in virtually all modern computing devices, rose by as much as 98 percent during the first quarter of 2026 and are projected to climb by a further 58 to 63 percent in the current quarter.
The phenomenon has been dubbed “RAMageddon” by some industry observers, reflecting the severity of the supply squeeze created by the AI boom. Memory suppliers have increasingly entered long-term agreements with hyperscale technology companies investing heavily in AI data centres.
Micron disclosed this week that it has secured approximately $22 billion in long-term customer commitments for memory products, underscoring the intense demand from AI-related projects.
The ripple effects are expected to weigh on global consumer electronics sales throughout the year. Reuters reported that research firm IDC now forecasts the smartphone market will record its steepest annual decline on record, falling by nearly 14 percent, while PC shipments are projected to contract by 11.3 percent.
Apple’s MacBook Neo had emerged as one of the few bright spots in the PC market after its March debut, contributing to stronger sales expectations for the company’s June quarter. However, its new $699 price tag removes the $100 pricing advantage it previously held over Dell’s recently launched XPS 13, while also placing it above several competing Chromebook models offered by Lenovo and Asus.
