There’s no way to put a positive spin on this: Apple has raised prices across most of its product lineup, with increases averaging 20% on Macs, iPads, HomePods, the Apple TV, and even the Vision Pro. The iPhone and Apple Watch remain unaffected… for now.
The price hikes took effect on June 25. In a statement to the press, Apple blamed the AI industry’s insatiable appetite for memory chips, which has caused prices for memory and storage to increase up to sixfold:
The consumer electronics industry is facing an unprecedented challenge. The rapid expansion of AI data centers has created an extraordinary surge in demand for memory and storage. We have never seen a component price increase this much, this quickly. 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.
Apple’s price increases vary widely. The base model of the Apple TV 4K took the biggest percentage hit, jumping from $129 to $199—a 54% increase that’s particularly puzzling given the device has only 64 GB of storage and 4 GB of memory. It may be setting a new price floor for the next-generation Apple TV. At the other end of the percentage increase spectrum, the Vision Pro rose just 6%, from $3,499 to $3,699.
Mac and iPad Price Changes
The Mac lineup saw significant increases at both the low and high ends:
- MacBook Neo: $599 → $699 (+17%)
- MacBook Air (13-inch): $1,099 → $1,299 (+18%)
- MacBook Pro (14-inch base): $1,699 → $1,999 (+18%)
- Mac mini (M4): $599 → $799 (+33%)
- Mac Studio (M3 Ultra): $3,999 → $5,299 (+33%)
The $1,300 increase for the M3 Ultra model of the Mac Studio is the largest absolute dollar jump in the lineup—a reflection of just how much high-memory configurations are affected by the shortage.
iPads saw increases of 15–30%, with the base iPad hit hardest:
- iPad: $349 → $449 (+29%)
- iPad mini: $499 → $599 (+20%)
- iPad Air (11-inch): $599 → $749 (+25%)
- iPad Air (13-inch): $799 → $949 (+19%)
- iPad Pro (11-inch): $999 → $1,199 (+20%)
- iPad Pro (13-inch): $1,299 → $1,499 (+15%)
Base prices tell only part of the story. Memory and storage upgrade prices also jumped dramatically, with the 64 GB and 128 GB memory upgrades for M5 Max models of the MacBook Pro doubling in price.
Why iPhones and Apple Watches Were Spared
Apple left the prices for the iPhone, Apple Watch, AirPods, and Studio Display unchanged. The Studio Displays and AirPods likely escaped because they use minimal memory. The iPhone and Apple Watch are a different story—Apple may be willing to accept lower margins on its flagship products, betting that stable prices will drive enough additional sales to offset reduced profit per unit.
There’s also the timing factor. New iPhone and Apple Watch models are expected in September, and rumors suggest Apple will introduce only high-end (and higher margin) iPhone 18 models then, with more affordable models held until early 2027. That makes buying a current-generation iPhone now potentially the better deal—new models will almost certainly debut at higher prices.
Apple Isn’t Alone
The memory crisis has hit the entire consumer electronics industry. Microsoft raised prices on all Surface PCs. Samsung is raising prices on its Galaxy smartphones. Lenovo, HP, and Dell have all raised laptop prices.
The culprit is the industry’s rapid expansion into AI. Data centers are consuming memory and storage at a pace the industry wasn’t equipped to handle. Memory chip suppliers like Micron, Samsung, and SK Hynix have directed production toward AI chipmakers like Nvidia, who are willing to pay top dollar, leaving consumer electronics to compete for whatever remains. Industry observers expect the shortage to persist through at least 2027 due to the time required to build manufacturing capacity.
What Should You Do?
If you need a Mac or iPad, some retailers may not have updated prices yet, but that won’t last. Similarly, you could look for a refurbished Mac from Apple or a certified pre-owned Mac from retailers like OWC, but those prices have largely increased as well.
For the iPhone and Apple Watch, the calculus is unusual: normally, we’d encourage waiting for September’s new models, but this year, buying now at current prices may save you some money.
Ultimately, the only options may be to bite the bullet and pay current prices, buy a less-expensive model or configuration, or hold on to your existing hardware in the hopes that prices come back down.
(Featured image generated by Adam Engst with ChatGPT)
Social Media: Apple just raised Mac and iPad prices by 15–33%, blaming the AI industry’s hunger for memory and storage chips. The iPhone and Apple Watch were spared, but the next new models may be more expensive. Here’s what you need to know.
