Apple implemented sweeping price increases across its Mac and iPad lineups, a rare move the company attributes to soaring memory and storage chip costs driven by insatiable artificial intelligence demand.
The entry-level MacBook Air with 512GB storage jumped from $1,099 to $1,299, an 18% increase. Some high-end Mac Studio configurations saw hikes up to $1,300.
iPad prices also rose significantly. The iPad Air (128GB) increased from $599 to $749, and the iPad Pro (256GB Wi-Fi) climbed from $999 to $1,199.
CEO Tim Cook described the memory shortage as a "hundred-year flood," unprecedented in his four decades in the industry. He indicated Apple had been absorbing rising component costs but the previous pricing model became unsustainable.
The surge in AI data center spending is fueling the shortage. Training large language models and running inference requires massive amounts of high-bandwidth memory. Apple now competes for DRAM and NAND flash supply against hyperscalers like Microsoft, Google, and Amazon, who are investing tens of billions in AI infrastructure.
iPhones were explicitly excluded from the increases, a strategic move as the device drives significant revenue through the App Store, services, and accessories.
Apple's shares fell approximately 6% following the announcement. Analysts are monitoring for similar moves from other PC makers reliant on the same supply chain.