Apple raised prices on MacBook and iPad models Thursday, citing a surge in memory and storage costs driven by AI data center demand, while warning that further increases are likely ahead.
Apple on Thursday raised prices across its MacBook and iPad lineups, formally passing higher memory and storage costs on to consumers for the first time, while signaling additional increases may follow.
The new pricing takes effect immediately. The MacBook Neo entry model rises from $599 to $699, the MacBook Air 512GB climbs from $1,099 to $1,299, and the MacBook Pro 1TB increases from $1,699 to $1,999. On the iPad side, the iPad Air 128GB moves from $599 to $749, while the iPad Pro Wi-Fi 256GB rises from $999 to $1,199. Apple's online store briefly went offline Thursday morning before returning with the updated figures.
"The consumer electronics industry is facing an unprecedented challenge," the company said in a statement. "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."
Apple added that it has "reached a point where we need to begin raising prices on a number of products," leaving open the possibility of further adjustments. "We know this is not welcome news, and we are working tirelessly to find solutions," the company said.
CEO Tim Cook signaled the move was coming in remarks to The Wall Street Journal last week, saying Apple could no longer fully absorb the component cost spike tied to the artificial intelligence boom. "This is a hundred-year flood," Cook told the Journal. "I've never seen anything like it in any area in over 40 years."
Memory and storage prices have quadrupled over the past three quarters, according to Counterpoint Research, as suppliers redirect production capacity toward the high-bandwidth memory required by AI server infrastructure.
The supply shift has proven highly profitable for component makers. Micron reported this week that revenue more than quadrupled in its most recent quarter, with gross margin jumping from 39% a year ago to 84.9% — surpassing both Nvidia and Meta. Bank of America, reiterating a buy rating on Micron Thursday, described the results as evidence of "stronger for longer pricing" and cited "increasing supply-side discipline supporting a more durable cycle."
Apple has already begun adjusting its product lineup ahead of formal price increases. In May, the company quietly removed the $599, 256GB Mac mini configuration, making the $799 model the new entry point.
Tarun Pathak, research director at Counterpoint Research, estimates higher component costs could add roughly $200 per iPhone for Apple, and projects increases of approximately $150 to $200 across the lineup, weighted more heavily toward higher-memory configurations. IDC expects all new iPhone models to ship with 12GB of RAM, as Apple works to ensure new devices can run the full suite of Apple Intelligence features.
IDC estimates roughly 54% of iPhones shipped since 2022 will not support the complete new Siri experience, a dynamic that gives Apple a basis to frame higher prices around greater on-device capability rather than raw component inflation. IDC sees Apple's average selling price rising 12% this year, driven by a richer product mix and the anticipated launch of a foldable iPhone.
Barclays, which reiterated an underweight rating on Apple on Thursday, cited "an uncertain growth backdrop, regulatory risks in Services, undefined AI strategy, and a premium valuation" as reasons for caution, and said it was not changing its estimates in response to the pricing news.
With memory costs showing no near-term signs of easing and Apple explicitly leaving the door open to further adjustments, the Thursday announcement is widely expected to be the first in a series of pricing actions that will reshape the company's product economics heading into its fall hardware cycle.
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