Apple and Microsoft have said they are raising prices on a range of consumer electronics as surging demand from artificial intelligence data centers drives up the cost of memory and storage components.
Apple announced price increases for MacBook computers, iPad tablets and other products, while Microsoft said it will raise Xbox console prices worldwide by $100 to $150 starting Aug. 1.
On Apple’s U.S. website, price increases ranged from $30 to $300. The 14-inch MacBook Pro now sells for $2,000, up from $1,700, while the iPad Air increased from $600 to $750. The Apple TV streaming device rose from $130 to $200. The price of the iPhone remained unchanged.
“The rapid expansion of AI data centers has created an extraordinary surge in demand for memory and storage,” an Apple spokesperson said. “We have never seen a component price increase this much, this quickly.”
Last week, outgoing Apple CEO Tim Cook told The Wall Street Journal that price increases were “unavoidable.”
“There’s less supply at a time when consumers want devices and the memory guys are passing along huge price increases,” Cook said, describing the situation as a “hundred-year flood.”
Analysts expect iPhone prices to rise later this year.
IDC analyst Nabila Popal said the latest price hikes were higher than she had expected, which suggests the iPhone price hikes may also be higher than expected, perhaps as much as $200 for the iPhone Pro and Pro Max models.
“I think the days of $50 price increases are over,” she said.
Microsoft said the cheapest Xbox Series S will increase to $500 in the United States, while the Series X will rise to as much as $800. The company also said the 2-terabyte model will be discontinued.
The Redmond, Washington-based company said the cost of storage and memory has more than doubled and is expected to double again by late 2027. Microsoft noted that game consoles, unlike phones or computers, “are typically not sold at a profit, but instead for less than they cost to make.”
Microsoft’s gaming division, which accounted for about 8% of its revenue in its fiscal year 2025, underwent a major restructuring in February amid declining revenue, particularly from Xbox sales, and disappointing performance from new games.
The accelerated construction of data centers for AI training and applications has sent the cost of memory and storage chips soaring. They are found in virtually all electronic devices.
All consumer electronics are affected by price hikes for tech components: in recent months,
This market, dominated by giants such as South Korea’s Samsung and SK Hynix and U.S.-based Micron, has suffered from major shortages for several months, which has driven prices up.
Sony increased the price of its PlayStation 5 by 100 euros in Europe in April, while Nintendo announced a more than 6 percent increase for its Switch 2 beginning Sept. 1.
