Apple lifts prices on iPad, MacBook and other devices amid soaring memory chip costs

Apple said on Thursday that it will raise the prices of a range of iPad and MacBook models because of sharply higher memory and storage chip costs linked to the expanding artificial-intelligence industry. The company excluded the iPhone from the hikes but indicated that it can no longer fully shield customers from the component price surge.

"We have never seen a component price increase this much, this quickly," Apple said in a statement. "We have shielded our customers from these increases so far, but we have now reached a point where we need to begin raising prices on a number of products, including today's increases for the iPad and Mac."

The adjustments include a $100 increase for the entry-level Neo laptop, raising its price from $599 to $699, and a $200 rise for the MacBook Air with 512 GB storage, now $1,299. The 1 TB MacBook Pro will cost $1,999, up $300, while the iPad Air with 128 GB storage moves from $599 to $749. Prices for both HomePod smart speakers and Apple TV set-top boxes were also increased.

Apple CEO Tim Cook previously told the Wall Street Journal that price hikes were inevitable, adding that the company has tried to mitigate the impact but the situation had become unsustainable. In a later analyst call, Cook warned that memory costs are expected to continue affecting the business beyond the June quarter.

Industry analysts noted that even Apple’s strong supplier relationships are being tested by the memory shortage, which has been intensified as chipmakers prioritize orders for AI hardware makers such as Nvidia.