Apple Hikes Mac & iPad Prices Up to 33%

What did Apple announce on June 26, 2026?

Apple raised prices across its Mac and iPad product lines on Thursday, June 26, 2026. The company cited a memory chip shortage caused by surging demand from AI data centers. Apple called the situation an "unprecedented challenge" for the consumer electronics industry.

"The rapid expansion of AI data centers has created an extraordinary surge in demand for memory and storage," Apple said in a written statement. "We have never seen a component price increase this much, this quickly."

How much did Apple raise its prices?

Here's a before-and-after look at the key price changes, as reported by Al Jazeera and PBS NewsHour:

The Mac Studio M3 Ultra saw the steepest dollar increase of any product in the lineup — a jump of $1,300, or roughly 32%.

Why did Apple raise prices now?

Apple said it had been absorbing rising component costs to protect consumers. But the company said it had "reached a point where we need to begin raising prices." The AI data center build-out has created extraordinary demand for the same memory and storage chips used in consumer devices. Apple said it is "working tirelessly to find solutions."

How did markets react?

Apple's stock fell on the news. PBS NewsHour reported shares dropped $13.29, or 4.5%, to $279.88 on Thursday afternoon. Al Jazeera reported the fall exceeded 6% at its steepest — the largest single-day drop for Apple since President Donald Trump's "liberation day" tariff announcement in April of last year.

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Did Microsoft raise prices too?

Yes. Microsoft also announced price increases, citing the same component crisis. The Redmond, Washington-based company raised the price of its 512 GB Xbox gaming console by $100 and its 1 TB model by $150.

Microsoft said console storage and memory prices have already increased by more than 2.5x. The company added it expects "another doubling by the fall of 2027." Microsoft said it had spent months working with suppliers before concluding another price increase was unavoidable.

"The entire consumer electronics industry is struggling with the current components crisis, but the effects are particularly hard on consoles," Microsoft said.

Will iPhone prices go up next?

Analysts say yes. IDC analyst Nabila Popal told PBS NewsHour the Mac and iPad price hikes came in higher than she had expected. That suggests iPhone increases could also be larger than anticipated — potentially as much as $200 for iPhone Pro and Pro Max models.

"I think the days of $50 price increases are over," Popal said.

Australia-based consumer tech analyst Trevor Long told Al Jazeera he expects the next iPhone to carry a $50–$150 price increase across the range, depending on the model. Long also noted that the MacBook Neo, Apple's new entry-level laptop, had been a strong value proposition. The price hike narrows that advantage against competing products.

Here's what we know so far: both Apple and Microsoft are pointing to the same root cause — AI infrastructure growth consuming the memory and storage supply that consumer electronics depend on. The AI hardware squeeze is no longer just an enterprise problem.

What is driving the memory chip shortage?

The shortage stems from the rapid build-out of AI data centers worldwide. These facilities require massive amounts of memory and storage chips — the same components used in laptops, tablets, and gaming consoles. As AI model access expands across government and enterprise, data center demand has outpaced chip supply. Apple said it has never seen component prices rise "this much, this quickly."

The AI expansion is reshaping hardware economics across the consumer electronics industry, not just the server market.

Frequently asked questions

How much did the MacBook Air price increase in 2026? The MacBook Air (512 GB) rose from $1,099 to $1,299 — a $200 increase. Apple announced the change on June 26, 2026, blaming an AI-driven memory chip shortage that has pushed component costs to record levels. The company said it had been shielding customers from rising costs but had reached a point where price increases were unavoidable.

Why did Apple raise Mac and iPad prices? Apple cited a memory chip shortage caused by the rapid expansion of AI data centers. The company said demand for memory and storage has created an "unprecedented challenge" for the consumer electronics industry. Apple stated it had never seen component prices rise "this much, this quickly" and said it had absorbed costs as long as possible before passing them on to consumers.

How much did Microsoft raise Xbox prices? Microsoft raised the price of its 512 GB Xbox by $100 and its 1 TB Xbox by $150. The company said console storage and memory prices have already increased by more than 2.5x and expects another doubling by fall 2027. Microsoft said it spent months working with suppliers before concluding another price increase was unavoidable.

Will Apple raise iPhone prices in 2026? Analysts expect iPhone price hikes later in 2026. IDC analyst Nabila Popal said the Mac and iPad increases came in higher than expected, which suggests iPhone hikes could also be larger — potentially as much as $200 for Pro and Pro Max models. Consumer tech analyst Trevor Long estimated a $50–$150 increase across the iPhone range, depending on the model.

What Apple product saw the biggest price increase? The Mac Studio M3 Ultra desktop computer saw the steepest price increase. It jumped from $3,999 to $5,299 — a $1,300 increase, or roughly 32%. Among portable devices, the MacBook Pro (1 TB) rose by $300, from $1,699 to $1,999, representing the largest dollar increase in the laptop lineup.