Apple to raise product prices due to AI-driven memory chip shortage
Apple CEO Tim Cook announced unavoidable price increases on Apple products due to a global memory chip shortage, driven by surging AI demand for data centers. The shortage has intensified competition for DRAM and storage chips, making cost increases unsustainable. Cook did not specify timing, magnitude, or affected products, but analysts expect $100 hikes on premium iPhones, Macs, and iPads. The move comes as Cook prepares to step down in September.
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Apple Stock Falls on Bigger Mac, iPad Price Hikes, But Company Seen Weathering Memory Cost Storm
Apple shares plunged over 6% in their worst session in over a year after the company announced larger-than-expected price increases on MacBooks and iPads, ranging from 17% to 25%. The move is Apple's first official pass-through of higher memory costs to consumers, following CEO Tim Cook's warning that increases were unavoidable. Analysts note Apple's massive scale, strong supplier relationships with memory makers, and ability to lock in long-term contracts give it an edge over rivals like Microsoft, which also raised Xbox prices. Despite demand destruction fears, Apple benefits from a promising AI roadmap through its partnership with Google's Gemini, upgraded Siri, and strong profit margins that provide a cost cushion during the memory shortage driven by AI demand from hyperscalers.
US Top News and AnalysisApple's 5% Stock Plunge Erases $275 Billion After MacBook And iPad Price Hikes
Apple's stock fell 5.3% on June 25, 2026, wiping out about $275 billion in market value after the company announced significant price increases on MacBooks and iPads, citing soaring memory and storage chip costs driven by AI data center demand. Starting prices for the cheapest MacBook Pro rose from $1,699 to $1,999, while other models saw similar hikes. CEO Tim Cook described the component price surge as a 'hundred-year flood.' The price rises dropped Apple's market cap below $4 trillion, making it the third-largest company behind Alphabet and Nvidia. The article notes that other tech firms like Nintendo, Sony, Microsoft, Lenovo, Dell, and HP are also raising prices due to the memory chip shortage, which analysts predict may persist through 2027. Apple hinted that upcoming iPhones may also see price increases of $150 to $200 per unit.
Forbes - BusinessApple Hikes MacBook and iPad Prices Up to $300 Amid AI-Driven Memory Chip Shortage
On June 25, 2026, Apple announced significant price increases of $100 to $300 across its MacBook and iPad lineup, citing soaring memory and storage chip costs driven by surging AI demand. The cheapest MacBook Pro now starts at $1,999 (up from $1,699), the MacBook Neo rose from $599 to $699, and the MacBook Air 512GB increased from $1,099 to $1,299. iPad Air 128GB jumped to $749 from $599, and the iPad Pro Wi-Fi 256GB rose to $1,199 from $999. CEO Tim Cook described the situation as a 'hundred-year flood' in component pricing. The company stated it has 'never seen a component price increase this much, this quickly.' Memory contract prices surged 80-90% in Q1 2026 alone. Analysts at Goldman Sachs and Morgan Stanley predict the chip undersupply will persist through at least 2027. Apple warned that iPhone 18 series prices may rise $150-$200 when unveiled in September. Other tech companies including Nintendo, Sony, Microsoft, Lenovo, Dell, and HP have also raised prices on their hardware due to the same shortage.
Forbes - BusinessApple raises prices on MacBook and iPad due to memory crunch, hints at more to come
Apple announced price increases on its MacBook and iPad product lines on June 25, 2026, citing an unprecedented surge in memory and storage costs driven by AI data center demand. CEO Tim Cook described the situation as a 'hundred-year flood' and noted that component prices have quadrupled in the past three quarters. Specific price hikes include the MacBook Neo from $599 to $699, MacBook Air 512GB from $1,099 to $1,299, and iPad Air 128GB from $599 to $749. Apple hinted further increases may follow. The memory crunch has benefited suppliers like Micron, whose gross margin surged to 84.9%. Analysts expect similar price increases for iPhones later this year, with average selling prices projected to rise 12%.
US Top News and AnalysisApple to Raise Prices Due to AI-Driven Global Memory Shortage
Apple CEO Tim Cook has announced unavoidable price increases on Apple products due to an 'unsustainable' global memory shortage, a rare concession from a company typically insulated by its market power. The shortage is driven by surging demand from AI chips, primarily from Nvidia, which consume the majority of available memory and storage. Analysts expect Apple to raise prices on premium devices like the iPhone Pro and Pro Max by $100, as well as on most Mac and iPad models. The move comes less than three months before Cook steps down as CEO. Some analysts see an opportunity for Apple to gain market share from Android manufacturers, who may be forced to cut specs or raise prices more aggressively. The average smartphone price is expected to rise 20% this year.
US Top News and AnalysisApple to raise prices due to memory chip shortage
Apple CEO Tim Cook announced in a Wall Street Journal interview that the company will raise prices on its products to offset increasing memory and storage chip costs. A surge in AI-driven demand for data centres has intensified competition for dwindling chip supplies, driving prices sharply higher. Cook stated that price increases are unavoidable and the situation has become unsustainable despite efforts to shield customers. He did not disclose the timing, magnitude, or specific products affected. Cook is set to hand over leadership to John Ternus in September. The article was published by Reuters on June 18, 2026.
The Hindu: Latest News today from India and the World, Breaking news, Top Headlines and Trending News Videos.Apple to raise prices due to memory chip shortage: CEO Cook
Apple CEO Tim Cook announced that the company will raise prices on its products to offset increasing costs from a memory chip shortage, with particular emphasis on the DRAM market. The announcement was made in an interview with the Wall Street Journal, as reported by The Business Times Singapore. Cook stated that price increases are unavoidable due to rising memory and storage costs. The article was published on June 18, 2026, and highlights the impact of the global semiconductor supply chain issues on consumer electronics pricing.
The Business TimesApple to raise prices due to memory chip shortage: CEO Cook
Apple CEO Tim Cook announced that the company will raise prices on its products to offset increasing costs caused by a memory chip shortage. The company is particularly concerned about rising costs in the DRAM market, as well as storage costs. Cook stated that price increases are unavoidable. The announcement was made in an interview with the Wall Street Journal, and the article was published by The Business Times Singapore on June 18, 2026.
The Business TimesApple to raise prices due to memory chip shortage, CEO tells WSJ
Apple CEO Tim Cook announced in a Wall Street Journal interview that the company will raise prices on its products to offset rising memory and storage chip costs. The shortage is driven by surging AI demand for data centers, which has intensified competition for key components. Cook stated that price increases are unavoidable despite efforts to shield customers, and that the situation has become unsustainable. He did not specify when or how much prices would rise, nor which products would be affected. Apple is reportedly preparing to release its first foldable iPhone and the iPhone 18 Pro models in September. Cook noted that DRAM supply is being diverted to high-bandwidth memory for AI servers, reducing availability for consumer devices. He indicated Apple is willing to use its cash reserves to boost memory supply but has no plans to build its own factories.
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