Apple Raises Mac and iPad Prices as Memory Chip Shortage Bites

Apple has raised prices across its Mac and iPad lineup after a global shortage of memory chips and storage pushed up component costs. The price increases, which took effect on Thursday, cover the MacBook Neo, MacBook Pro, MacBook Air, iPad Air and iPad Pro. Notably, the prices of iPhone were not changed.

In a statement to Bloomberg, an Apple spokesperson said, "The rapid expansion of AI data centers has created an extraordinary surge in demand for memory and storage" and that the company has "never seen a component price increase this much, this quickly."

The company added that it has "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 including today's increases for iPad and Mac." "We know this is not welcome news, and we are working tirelessly to find solutions," it said.

How Much Prices Have Gone Up

The starting price of the MacBook Neo, Apple's latest laptop, has risen to $699 from $599. The MacBook Air is now priced at $1,299, up from $1,099. The entry-level 14-inch MacBook Pro has moved to $1,999 from $1,699. On the iPad side, the 11-inch iPad Pro now starts at $1,199, up from $999, while the iPad Air has increased to $749 from $599. The price hikes are global.

The memory shortage is not new to Apple. In April, during the company's second quarter earnings call, Apple executives warned that memory shortages would worsen over the course of the year. Chief Executive Officer Tim Cook said at the time that the shortages were also impacting supply, with many Macs facing extended constraints and shipment delays. "We're not at the point where we're saying this is going to end anytime soon," Cook had said, adding that the constraints would likely last "several months."

In March, Apple's latest MacBook Air and MacBook Pro had included price increases that were offset by the inclusion of more memory and upgraded specifications. In May, the entry-level $599 configuration of the Mac mini was eliminated.

Cook also noted in April that the iPhone had been less affected by the memory issue than the Mac, facing instead shortages related to its main device processors. The company is set to release new smartphones in September, including a foldable model expected to be priced above $2,000.

John Ternus, most recently Apple's head of hardware engineering, will take over as Chief Executive Officer on September 1, succeeding Cook. He will inherit the memory crisis as the shortage continues to hold back key product releases, including an updated Mac Studio.