In a move that underscores the far-reaching impact of the AI boom on the tech industry, Apple has increased prices for its iPad and MacBook lines, citing skyrocketing memory and storage chip costs. The price hike, which takes effect immediately, will see the starting price of the company's lowest-priced laptop, the Neo, rise from $599 to $699. This change comes just months after the Neo's launch and is a significant departure from Apple's usual pricing strategy. The company has managed to shield its customers from the rising costs of memory and storage chips until now, but the surge in demand from AI chipmakers like Nvidia has left Apple with little choice but to pass on the increased costs to consumers. According to Apple, the price increase is a result of unprecedented rises in component costs, with memory prices rising as much as 98% in the first quarter of 2026. The company has raised prices across several product lines, including the MacBook Air and MacBook Pro, with price increases ranging from $200 to $300. While Apple's deep supplier ties have provided some cushion against the price surge, analysts expect the company to raise iPhone prices in the near future. The price hike is likely to have significant implications for device sales, with research firm IDC predicting a 14% decline in the smartphone market and an 11.3% decline in the PC market this year.

Source: The Guardian