Apple and Microsoft raise prices as memory-chip shortage spreads
Apple and Microsoft passed AI-era memory costs to buyers, with MacBooks, iPads and Xbox consoles getting pricier as chip shortages spread.
Apple raised prices on some MacBooks and iPads after memory and storage chip costs surged, and Microsoft moved within hours to lift Xbox prices. Apple’s changes hit MacBook Air, MacBook Pro, iPad Air and iPad Pro models, while iPhone prices stayed unchanged. Microsoft will raise Xbox prices on August 1.
The Xbox Series S 512GB rose by $100 to about $500, 1TB versions increased by $150, and the entry-level Xbox Series X started at about $750, with the standard Series X around $800. Apple said it could no longer absorb the expense, its first formal step to pass higher memory and storage costs directly to consumers.
Behind the price increases is a shortage driven by the AI buildout in data centers, which has redirected memory supply toward servers and advanced computing systems. Nabila Popal, an analyst at IDC, said smaller manufacturers may not even be able to secure the memory they need because suppliers are prioritizing the biggest players. Zaman, founder of Mono, said 8 gigabytes of DRAM jumped from $35 during development to $300 today, forcing him to weigh a second production run, a price increase of at least one-third or a stripped-down version with 75% less memory.
Micron’s latest quarterly revenue more than quadrupled during the memory boom, while IDC warned late last year that the shortage could persist into 2027. Global smartphone shipments could fall by about 12.9%, or roughly 160 million units, in 2026, and GoPro has said some suppliers raised memory costs by 80% to 115%. If the shortage lingers, electronics makers face higher prices, fewer promotions and the risk of product shortages into the holiday season.
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