Winning Bizness Desk

Mumbai.Apple has increased the prices of several iPad and MacBook models after a sharp rise in memory and storage chip costs triggered by the global artificial intelligence boom. The company has raised prices by up to $300 in the United States, while customers in India are seeing increases of as much as Rs 1 lakh on select premium models. Apple said the unprecedented rise in component costs has left it with little choice but to pass part of the burden on to consumers, although iPhones have been spared from the latest price revision.

Rising chip costs force Apple’s decision

The company said the rapid expansion of AI data centres across the world has significantly increased demand for memory and storage chips, making these components much more expensive. Apple stated that it had absorbed higher costs for as long as possible but had now reached a point where price hikes had become unavoidable.

Key highlights:

• iPad and MacBook prices have increased globally.
• Premium models in India are costlier by up to Rs 1 lakh.
• Price hikes in the US go up to $300.
• iPhones remain unaffected in the current round.

Several Apple products become more expensive

Apple's latest move affects multiple products across its computing portfolio. The entry-level Neo laptop, introduced only a few months ago, will now start at $699 instead of $599. The 512GB MacBook Air has become $200 more expensive, while the 1TB MacBook Pro now costs $300 more. The company has also increased prices of both Home Pod smart speaker variants and the Apple TV set-top box. Following the announcement, Apple shares slipped nearly 5%, while rival Dell's stock fell by more than 8%, reflecting concerns over rising hardware costs across the industry.

AI boom reshapes global chip supplies

Industry experts say memory manufacturers have increasingly prioritised orders from AI chip companies such as Nvidia because of their massive demand for advanced chips. Companies like Micron have secured record profits by focusing on AI-related contracts, leaving fewer memory supplies available for consumer electronics manufacturers.

The impact includes:

• Reduced chip availability for electronics makers.
• Higher manufacturing costs across the industry.
• Stronger pricing pressure on laptops and tablets.
• Even Apple unable to avoid the global supply squeeze.

Experts note that although Apple enjoys stronger supplier relationships than many competitors, it has still been forced to increase prices. Those relationships have, however, helped the company limit price hikes compared with several rival brands facing even steeper cost increases.

Experts warn iPhone may be next

Apple said it had never witnessed such a steep and rapid increase in component prices. According to the company, it had protected customers from rising costs for as long as possible but could no longer continue doing so. Market analysts now believe the next major product likely to see a price revision could be the iPhone. IDC Senior Research Director Nabila Popal said iPhones are unlikely to remain insulated from the cost surge for much longer. Analysts also described the timing of the announcement as strategic, coming ahead of Apple's traditional fall product launch so that attention remains focused on new features rather than pricing.

‘RAM-ageddon’ clouds gadget market outlook

The current crisis has been dubbed "RAM-ageddon" by industry experts after prices of Dynamic Random Access Memory (DRAM), used in modern electronic devices, jumped by as much as 98% during the first quarter of 2026. Industry tracker TrendForce estimates another 58% to 63% rise during the current quarter. The shortage has been fuelled by AI data centre expansion, with companies such as Nvidia signing long-term supply agreements with memory manufacturers.

Micron recently disclosed that it had secured $22 billion worth of long-term memory supply contracts. Research firm IDC expects these rising costs to hit global consumer demand, forecasting a 14% annual decline in smartphone sales this year and an 11.3% drop in the PC market as higher prices discourage buyers.

Key takeaways:

• DRAM prices surged 98% in early 2026.
• More price increases are expected this quarter.
• AI data centers continue to dominate chip demand.
• Smartphone and PC sales are projected to weaken due to rising costs.