Apple and Microsoft have announced significant price hikes for several flagship products, including Macs, iPads, and Xbox consoles. The increases are primarily due to skyrocketing memory and storage chip costs fueled by the rapid growth of AI technology.
- Apple’s Mac and iPad prices rise 15% to 25% due to memory cost surges
- Microsoft hikes Xbox console prices, discontinues 2TB model
- Memory chip costs driven by AI demand could double again by next year
What happened
Apple announced price increases for its Mac computers and iPad tablets, with prices rising between 15% and 25% on select models. The MacBook Air now costs $1,299, up $200, and the entry-level MacBook Neo is available for $699, up $100. The iPad Pro saw a $200 increase to $1,199, while the iPad Air rose by $150 to $749. Apple has so far delayed raising prices on its iPhone lineup but indicated that this could change soon.
Shortly after Apple's announcement, Microsoft revealed it is raising prices for its Xbox consoles, effective August 1. Xbox models with 512GB storage will be $100 more expensive, and 1TB models will increase by $150. Microsoft is also discontinuing the 2TB Xbox model. The company attributed the hikes to the soaring price of memory and storage chips, which have increased 2.5 times since early 2026.
Why it matters
The sharp increase in prices highlights the broader impact of artificial intelligence on everyday consumer electronics. Memory chips like DRAM and NAND are critical components not only for AI servers but also for personal gadgets, gaming consoles, and other intelligent devices. With AI-related demand surging, chip manufacturers such as Micron Technologies are reporting record profits, while end consumers face steeper costs.
This trend is expected to stress consumers and the broader electronics market further, as industry analysts predict memory and storage prices may continue rising through 2027. The cost pressure could lead to a ripple effect, complicating product affordability and innovation cycles across multiple technology sectors.
What to watch next
Consumers should monitor how these price increases impact overall demand for personal computers, tablets, and gaming consoles in the coming quarters. Apple’s hesitation to raise iPhone prices so far suggests it may carefully time future price adjustments in response to further chip cost changes and market conditions.
Microsoft’s moves to soften the price impact, including financing options and trade-in programs for used consoles, will be important to watch as they could set consumer expectations and influence purchasing behavior. Additionally, chipmakers’ future earnings reports may provide early indicators of whether supply-side cost pressures will ease or intensify.