Apple raises prices on almost its entire Mac and iPad lineup. Xbox and other electronics are next

Apple has officially raised prices on most Mac computers, iPad tablets and a number of other devices. The reason is unusual: a global shortage of memory and storage, driven by the rapid development of artificial intelligence and the construction of massive data centers around the world.

In effect, this is Apple’s first large-scale price increase in many years, and it is not tied to the launch of new models or changes in the product lineup, but to rising component costs. The company acknowledged that it can no longer fully absorb higher memory and storage prices on its own.

What has become more expensive

Price increases have affected almost the entire lineup:

MacBook Neo — from $599 to $699;

MacBook Air — from $1099 to $1299;

MacBook Pro 14" — from $1699 to $1999;

MacBook Pro 16" — from $2499 to $2999;

iMac — from $1299 to $1499;

Mac Studio — from $1999 to $2499;

iPad Air — from $599 to $749;

iPad Pro — from $999 to $1199;

base iPad — from $349 to $449.

Prices have also risen for HomePod, Apple TV and the Vision Pro headset. In some cases, device prices have increased by several hundred dollars at once.

The reason is the artificial intelligence boom

The main reason for the price increase is the global shortage of DRAM and NAND memory chips, which are used in almost all modern electronics.

Over the past two years, the world’s largest technology companies — Microsoft, Google, Meta, Amazon and OpenAI — have begun building AI data centers on a massive scale to train and run neural networks. Such centers require huge amounts of memory, so chipmakers are increasingly directing their capacity to this market.

As a result, memory prices have risen at record pace. According to industry analysts, the cost of some types of DRAM has almost doubled over the past year, and the shortage may persist for several more years.

Apple warned in advance

Back in June, Apple CEO Tim Cook warned investors that it was becoming increasingly difficult for the company to keep device prices unchanged. According to him, Apple had long absorbed the extra costs itself, but the current rise in component prices turned out to be too significant.

At the same time, the company has so far kept prices unchanged for the iPhone, AirPods and Apple Watch. However, analysts do not rule out that new iPhone models this fall may also end up more expensive than the previous generation.

Apple is not alone: the entire industry is getting more expensive

Microsoft announced a price increase almost at the same time. The company said Xbox consoles will become more expensive starting in August. Some models will rise in price by $100 to $150.

For example, the Xbox Series S with a 512 GB drive will cost around $499, while some Xbox Series X versions will approach the $800 mark. Microsoft also linked its decision to rising memory and other component costs.

Experts note that the entire electronics market has come under pressure. Laptop, server and computer component makers have already warned about rising costs. If the memory shortage continues, other companies may raise prices in the coming months as well.

The end of the era of cheap electronics

Just a few years ago, technology became cheaper almost every year. But today the market is facing the opposite: artificial intelligence, which was supposed to make the digital world more efficient and accessible, has unexpectedly become one of the main reasons electronics are getting more expensive.

If analysts’ forecasts prove correct and the memory shortage lasts until 2027, the current price increases from Apple and Microsoft may turn out to be only the beginning of a new wave of price hikes in the global hardware market.