Apple raises MacBook and iPad prices up to 20% citing AI chip shortage

Apple announced price increases of up to 20 % for select MacBook and iPad models, attributing the hikes to soaring memory‑and‑storage‑chip costs caused by the AI boom [1]. The move puts pressure on consumers and signals that even Apple’s deep supply‑chain leverage is being tested.

Why the price jump

Apple points to a “hundred‑year flood” of demand for DRAM and NAND as AI data centres consume an estimated 70 % of global DRAM production this year [2]. The surge has pushed component costs higher than Apple can absorb, forcing the company to shift part of the burden to customers. In India, the entry‑level MacBook Neo rose from ₹69,900 to ₹79,900, while the MacBook Air’s base price climbed ₹20,000 to ₹149,000 [2]. Similar hikes were reported for iPad, HomePod and Apple TV 4K models [2].

Market ripple effect

Apple is not alone; Microsoft’s Xbox announced a $100 increase for its standard console and a $150 rise for the higher‑storage version, marking its second price hike within a year [1]. Industry observers expect further price pressure on other PC, tablet and gaming manufacturers as the chip shortage spreads [1]. The price hikes come despite Apple keeping iPhone prices unchanged, a strategic decision to protect its core revenue engine and avoid disrupting telecom‑partner financing structures [2].

What to watch

• Supply‑chain developments – Monitor quarterly updates from major memory‑chip manufacturers for any easing of the AI‑driven demand surge.
• Apple’s next product cycle – The September launch of the iPhone 18 series may bring its own price adjustments, potentially framed around new AI features rather than component costs.
• Competitor responses – Watch for further pricing moves from other hardware makers, especially those reliant on similar DRAM/NAND supplies.

The hikes underscore that even the most supply‑chain‑savvy firms are feeling the strain of AI‑fuelled component shortages, raising questions about how long manufacturers can absorb cost spikes before broader price inflation reshapes the consumer tech market.