Apple raises MacBook and iPad prices as AI memory chip shortage worsens

Apple has raised prices on its MacBooks and iPads, citing a sharp surge in memory and storage chip costs driven by the artificial intelligence industry’s massive data centre buildout. This is a sign that even one of the world’s most powerful supply chains is not immune to the AI boom’s ripple effects.

The price hikes do not touch the iPhone, Apple’s biggest revenue driver, but they hit hardest at the MacBook Neo, the company’s entry-level laptop aimed at competing with affordable Windows and Chromebook machines. Its starting price rose from $599 (approximately ₦826,043) to $699 (approximately ₦964,202), just months after its March 2026 launch.

Other increases were significant too. The MacBook Air with 512 gigabytes of storage rose from $1,099 (₦1,514,801) to $1,299 (₦1,791,720). The MacBook Pro with 1 terabyte of storage climbed from $1,699 (₦2,343,032) to $1,999 (₦2,757,571).

The iPad Air with 128 gigabytes of storage went from $599 (₦826,043) to $749 (₦965,202). Apple also raised prices on both versions of its HomePod smart speaker and its Apple TV set-top box.

The root cause is a shortage of dynamic random access memory (DRAM), the chip used in virtually every modern electronic device. Memory makers like Micron have prioritised orders from AI chipmakers such as Nvidia, who are racing to secure supply for AI data centres, leaving device makers like Apple competing for what remains.

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Micron alone confirmed on Wednesday it has locked in $22 billion in long-term supply commitments from AI customers.

According to industry tracker TrendForce, DRAM prices rose by as much as 98% in the first quarter of 2026 alone, with another 58% to 63% increase expected this quarter, a phenomenon some analysts have started calling “RAMageddon.”

Apple’s shares fall, rivals expected to be hit even harder

Investors reacted immediately. Apple’s shares fell nearly 5% following the announcement, while rival Dell dropped more than 8%. Analysts warned that other device makers, lacking Apple’s deep and longstanding supplier relationships, may need to raise prices even more sharply than Apple has.

“The memory environment is tough and remains structurally tough for the foreseeable future,” said Ben Bajarin, CEO of technology consulting firm Creative Strategies.

Apple CEO Tim Cook had already warned investors in April that rising memory costs would begin affecting the company’s margins by the end of the June quarter. “We expect significantly higher memory costs,” Cook said at the time, adding that the impact would only grow heavier in subsequent quarters.

Analysts now expect the iPhone to face its own price increase when Apple’s fall lineup launches, with the timing of this week’s announcement seen as deliberate.

“It was incredibly strategic for Apple to make the price hike announcements prior to the iPhone fall launch, so the headlines at launch is not the price hikes but the value the new phones bring,” Nabila Popal, senior research director at IDC said.

The broader fallout from the memory shortage is significant. IDC now estimates the global smartphone market will see its biggest-ever annual decline of nearly 14% this year, while the PC market is projected to fall 11.3%, as rising component costs squeeze device makers across the industry.

This is a consequence directly traceable to the trillions of dollars being poured into AI infrastructure worldwide.