Apple shares fall nearly 5% after MacBook and iPad price increases
Apple announced higher prices for several MacBook and iPad models, citing rising memory and storage costs, and its stock dropped almost 5% on the news.
Apple said on Thursday that it would raise prices on a range of MacBook and iPad models, marking its first formal effort to pass higher memory and storage costs on to consumers. The adjustments include a $100 increase for the entry-level MacBook Neo, a $200 hike for the 512 GB MacBook Air, a $300 rise for the 1 TB MacBook Pro, and similar jumps for iPad Air and iPad Pro configurations. Apple’s online store was briefly offline before updating the listings.
The company attributed the price changes to a sharp increase in demand for memory and storage driven by artificial-intelligence data centers. > "The consumer electronics industry is facing an unprecedented challenge," Apple 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 price hikes are necessary and hinted that further increases could follow. > "We know this is not welcome news, and we are working tirelessly to find solutions," the statement read.
CEO Tim Cook told the Wall Street Journal that the company could no longer fully shield customers from the component cost spike linked to the AI boom. > "This is a hundred-year flood. I've never seen anything like it in any area in over 40 years," Cook said.
Industry data show memory and storage prices have roughly quadrupled over the past three quarters, as suppliers prioritize high-bandwidth memory for AI servers. Analysts expect the higher component costs could add about $200 to the price of an iPhone and $150-$200 across Apple’s broader product lineup, with a greater impact on higher-memory configurations.
Apple’s pricing strategy has historically involved eliminating the lowest-cost options and encouraging upgrades to higher-capacity models. The recent changes follow a similar pattern, such as the removal of the $599, 256 GB Mac mini configuration earlier this year.
Analysts project that Apple’s average selling price could rise about 12% this year, driven by a richer product mix and upcoming launches, including a potential foldable iPhone.