Apple, Microsoft Raise Prices Amid AI Memory Boom

Apple and Microsoft have announced price increases for several major products, citing sharply rising memory and storage costs driven by booming demand from artificial intelligence infrastructure.

The rising cost of Random Access Memory (RAM) and storage components, fuelled by the rapid expansion of AI data centres, is putting growing pressure on consumer electronics manufacturers.

Apple has raised prices across several Mac and iPad models in the United States, with some products seeing increases of more than 20 percent.

The base model of the MacBook Air now starts at $1,299, up from $1,099, while the entry-level MacBook Pro has increased from $1,699 to $1,999.

Meanwhile, the iPad Air price rose from $599 to $749, while the iPad Pro climbed from $999 to $1,199.

Apple’s entry-level MacBook Neo also saw a price increase, rising from $599 to $699.

The sharpest jump came for the Mac Studio M3 Ultra, which increased from $3,999 to $5,299.

Apple said it had previously absorbed rising chip costs but could no longer avoid passing some of the burden to customers.

The company noted that demand for memory and storage has surged due to massive investments in AI infrastructure, creating unprecedented supply pressure across the semiconductor market.

Following the announcement, Apple shares fell more than six percent, reflecting investor concerns about possible impacts on consumer demand.

Industry analysts warned that higher prices could affect sales, particularly in highly competitive product categories.

Microsoft also announced price increases for selected versions of its Xbox gaming consoles.

The company said prices for the 512GB and 1TB models would rise by $100 and $150 respectively, citing the same supply-side pressure on storage and memory components.

Microsoft said it had tried to avoid additional price increases by working with suppliers, but worsening component shortages made the move unavoidable.

The company warned that storage and memory prices have already increased by more than 2.5 times and could rise further in the coming years.

The latest price hikes highlight growing pressure on the global consumer electronics industry as AI-driven demand for advanced chips, memory and storage continues to reshape supply chains and pricing worldwide.