Apple raises prices on MacBooks and iPads

In Short:
– Apple increased MacBook and iPad prices due to rising memory and storage costs, impacting consumers.
– Shares fell over 6%, the worst drop since April 2025, amid significant changes in pricing strategy.

Apple announced price increases on MacBooks and iPads due to rising memory and storage costs.This marks the company’s first formal attempt to transfer these costs to consumers, according to CEO Tim Cook.

Price hike impacts

Shares fell over 6%, marking the worst drop since April 2025.

The price changes include the following:

– MacBook Neo entry rising from $599 to $699
– MacBook Air 512GB increasing from $1099 to $1299
– MacBook Pro 1T up from $1699 to $1999
– iPad Air 128GB increasing from $599 to $749
– iPad Pro Wifi 256GB rising from $999 to $1199

Apple’s online store was briefly down during the price updates.

The company stated the electronics industry faces significant challenges driven by AI data centre demand.

Cook indicated Apple can no longer fully shield customers from rising component costs due to the AI boom.

Memory prices have quadrupled in three quarters, benefiting suppliers like Micron.

The pricing strategy includes the removal of lower-cost options and steering consumers to higher configurations.

Research estimates suggest $200 could be added to iPhone costs due to higher component prices.

Apple’s average selling price may increase by 12% this year, aided by richer product mixes and potential foldable iPhone launches.

Apple’s future strategy

Enhanced on-device AI features necessitate higher memory.

IDC predicts that 54% of iPhones shipped since 2022 won’t support the latest Siri experience.

Apple may frame the price increases as a shift towards more capable hardware.

The memory crisis presents an opportunity for price adjustments rather than mere inflation recovery.