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Apple, Microsoft hike prices over surging chip costs

Apple and Microsoft hike prices as AI crunches global memory chip supply

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Apple increases MacBook and iPad prices by 20%

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Apple raised prices on its entire Mac and iPad product lines on June 25, with increases ranging from roughly 17% to 25% on base models. The MacBook Air jumped from $1,099 to $1,299, while the MacBook Pro rose from $1,699 to $1,999.

Apple raised prices on its entire Mac and iPad product lines on June 25, with increases ranging from roughly 17% to 25% on base models. The MacBook Air jumped from $1,099 to $1,299, while the MacBook Pro rose from $1,699 to $1,999.

Apple attributed the hikes to surging memory chip costs driven by AI data center expansion, saying it had "never seen a component price increase this much, this quickly." The company said it had shielded customers from rising costs until that point.

Apple attributed the hikes to surging memory chip costs driven by AI data center expansion, saying it had "never seen a component price increase this much, this quickly." The company said it had shielded customers from rising costs until that point.

Apple shares fell more than 6% following the announcement, wiping out roughly $265 billion in market value. The iPhone, Apple Watch and AirPods were not subject to the price increases.

Apple shares fell more than 6% following the announcement, wiping out roughly $265 billion in market value. The iPhone, Apple Watch and AirPods were not subject to the price increases.

Microsoft announced its third Xbox price increase since late 2025, raising prices by $100 on 512GB models and $150 on 1TB models, effective Aug. 1. The company also discontinued its 2TB Xbox Series X model entirely.

Microsoft announced its third Xbox price increase since late 2025, raising prices by $100 on 512GB models and $150 on 1TB models, effective Aug. 1. The company also discontinued its 2TB Xbox Series X model entirely.

Memory chip prices for DRAM rose as much as 98% in the first quarter of 2026, according to industry tracker TrendForce, with a further increase of 58% to 63% projected for the following quarter. Major memory makers Samsung, SK Hynix and Micron have prioritized AI chipmaker orders over consumer device supply.

Memory chip prices for DRAM rose as much as 98% in the first quarter of 2026, according to industry tracker TrendForce, with a further increase of 58% to 63% projected for the following quarter. Major memory makers Samsung, SK Hynix and Micron have prioritized AI chipmaker orders over consumer device supply.

Micron CEO Sanjay Mehrotra said the memory shortage is expected to persist beyond 2027 due to AI-driven demand and structural supply constraints. Research firm IDC estimated the smartphone market could see its largest-ever annual decline of nearly 14% this year, while the PC market is projected to fall 11.3%.

Micron CEO Sanjay Mehrotra said the memory shortage is expected to persist beyond 2027 due to AI-driven demand and structural supply constraints. Research firm IDC estimated the smartphone market could see its largest-ever annual decline of nearly 14% this year, while the PC market is projected to fall 11.3%.

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