Apple and Microsoft raise MacBook, iPad and Xbox prices by up to $300

Apple announced on Thursday that select MacBook and iPad models will cost up to $300 more, while Microsoft said its Xbox consoles will rise $100‑$150 starting Aug. 1, citing a sharp jump in storage‑and‑memory component prices [1]. The moves put pressure on two of the world’s biggest consumer‑electronics brands and signal that the semiconductor shortage, amplified by AI‑driven demand, is now being passed to end users.

Apple’s price adjustments

Apple’s statement said component costs have “never… increased this much, this quickly,” and that the company had previously shielded customers from the surge [1]. The hikes affect the budget‑oriented MacBook Neo (from $599 to $699) and raise the MacBook Air 512 GB to $1,299 (up $200) and the MacBook Pro 1 TB to $1,999 (up $300). The iPad Air 128 GB now costs $749, $150 more than its prior $599 price. Apple excluded iPhones from the announcement, but analysts expect similar moves later, given the iPhone’s status as Apple’s top revenue driver [1].

Microsoft’s console price hike

Microsoft’s Xbox price increase adds $100 to the 512 GB model and $150 to the 1 TB version, bringing the latter close to $500. This follows a $20‑$70 hike last year and reflects a more than doubling of storage‑and‑memory prices, with expectations that costs could double again by fall 2027 [1]. Microsoft warned that consoles are “particularly hard” hit by the components crisis, underscoring the broader impact on consumer electronics [1].

Market context

The chip shortage, first triggered by pandemic‑related factory shutdowns, has been intensified by the rapid expansion of AI data centers, which demand large volumes of high‑performance memory. International Data Corporation flagged the memory market as at an “unprecedented inflection point” and projected the shortage to persist “well into 2027” [1]. Apple’s CEO Tim Cook described the situation as unsustainable, noting it as the worst component‑price surge he’s seen in over four decades [1]. The price hikes mark the first notable increase in personal‑computer pricing in decades, highlighting how AI‑driven demand is reshaping cost structures across the tech sector.

What to watch

• Launch of next‑gen Apple devices – any further price adjustments or new product announcements could reveal how the company plans to manage ongoing component costs.
• Microsoft’s Q3 earnings – will the Xbox price hike offset the rising component expense and affect the company’s profit margins?
• Semiconductor supply trends – monitor memory‑chip pricing reports from IDC and other analysts for signs of easing or further escalation through 2027.

These hikes illustrate that even market leaders with deep cash reserves are now forced to pass semiconductor cost pressures onto consumers, raising questions about how long the current pricing environment can be sustained and whether rivals will follow suit.