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Apple shares fell more than 6% on Thursday after the company raised prices across MacBook and iPad models. The move marked Apple’s first response to rising memory and storage costs linked to demand from artificial intelligence data centers. Apple left iPhone prices unchanged for now.
Apple increased the starting price of the MacBook Neo from $599 to $699. The MacBook Air with 512GB of storage rose from $1,099 to $1,299. Meanwhile, the 14-inch MacBook Pro with 1TB of storage now starts at $1,999, up from $1,699.
The company also raised iPad prices. The 11-inch iPad Air moved from $599 to $749, while the 13-inch model climbed from $799 to $949. Apple priced the 11-inch iPad Pro at $1,199, compared with $999 at launch. The 13-inch iPad Pro now costs $1,499, up from $1,299.
Apple said the consumer electronics industry faces an ‘unprecedented challenge’ as AI data centers use more memory and storage. The company also said component costs had risen faster than it had seen before. Still, the length of the shortage is uncertain, and industry forecasts differ on when supply conditions may improve.
Chief Executive Tim Cook warned in May that higher component prices were placing pressure on Apple’s margins. In a later interview, he said price increases had become ‘unavoidable.’ He also described the shortage as a ‘hundred-year flood,’ although that comparison reflects Apple’s view of market conditions.
Memory and storage prices have risen sharply as suppliers direct more capacity toward high-bandwidth memory for AI servers. This shift has reduced the supply available for computers, tablets, phones, and game consoles. Microsoft, Sony, Nintendo, and several computer makers have also raised prices on selected products.
Apple has often managed costs by removing cheaper versions, increasing base storage, or guiding buyers toward premium models. In May, the company stopped selling the $599 Mac mini with 256GB of storage. Its next entry model started at $799, giving buyers fewer low-cost choices.
Apple shares recorded their worst daily fall in more than a year after the announcement. The decline erased an estimated $250 billion to $265 billion from the company’s market value. Investors focused on whether higher prices could reduce demand for Macs and iPads as households limit large purchases.
Apple is also preparing new hardware and software. The company presented an updated Siri experience at its developers conference, with support for multi-step conversations and access to information inside apps. Apple has not announced a date for the service in the European Union, and analysts remain divided over whether the changes will support iPhone sales.
The company also plans to introduce a base M6 processor for entry-level Mac models later this year. Current devices use M5 chips. In addition, analysts expect Apple to enter the foldable phone market at the premium end, which could raise the average selling price of foldable devices.
Apple has so far protected the iPhone from price increases. However, higher memory needs for on-device AI could raise production costs. Research firms expect newer iPhones to use more RAM, while many older models may not support the full Siri update.
