Apple Hikes Mac and iPad Prices 20%-Plus; Microsoft Raises Xbox Prices Starting August

Apple raised prices across its Mac and iPad lineups last Thursday, with most popular models up 20% or more — citing soaring memory chip costs.^{[Al Jazeera]} Almost simultaneously, Microsoft pointed to the same chip-cost pressures to justify raising Xbox console prices, effective globally in August.^[Variety] The back-to-back moves come as memory and storage chip prices keep climbing, driven by AI data center demand.

Apple's price increases: models and magnitude

The hikes cover Mac and iPad, with the following changes at U.S. retail:

• Base MacBook Air: $1,099 → $1,299.
• Entry MacBook Pro: $1,699 → $1,999.
• iPad Air: $599 → $749.
• iPad Pro: $999 → $1,199.

Most popular models are up 20% or more, with Apple attributing the round of increases to surging memory chip costs.^[CBS] Notably, this announcement covers only Mac and iPad — iPhone is not part of it.

iPhone hikes are still analyst expectations, not fact

Unlike the Mac and iPad increases already in effect, iPhone price hikes remain a forecast, not an Apple decision. IDC analyst Nabila Popal said this round of Apple hardware increases exceeded prior expectations, and that iPhone pricing could also move higher this year — with Pro and Pro Max models potentially rising by as much as $200.^[Bloomberg]

• Confirmed (Apple official): Mac and iPad — most popular models up 20% or more.
• Unconfirmed (analyst view): iPhone may also rise this year; Pro and Pro Max potentially up as much as $200.

The distinction matters: only Mac and iPad price hikes are live. Whether — and when — iPhone follows depends on Apple's next move.

Microsoft's Xbox price hike: the details

Microsoft likewise cited chip costs and restructured its Xbox console lineup:

• 512GB model up $100; 1TB model up $150.
• Increases take effect globally on August 1, 2026.
• The 2TB model is being discontinued.

According to Variety, the changes span multiple storage configurations and come alongside a slimmer product lineup.^[Variety] Because consoles pack large onboard storage and RAM, memory chip price swings hit their bill of materials directly.

The chip-cost backdrop: "RAM-ageddon"

Both companies are raising prices against a common backdrop: rapidly rising memory and storage chip prices. AI data center buildouts have turbocharged demand for DRAM and NAND, a squeeze some outlets have dubbed "RAM-ageddon."^[Fortune]

• Console memory and storage prices have already risen more than 2.5x.
• Microsoft expects related prices to roughly double again by fall 2027.^[Bloomberg]

Bloomberg characterized the Apple and Microsoft hikes as a direct pass-through of memory chip supply tightness to consumer electronics end prices.^[Bloomberg]

Stock reaction and what to watch

Shares of both Apple and Microsoft pulled back around the time of the pricing announcements. Further official guidance on hardware pricing — including whether Apple addresses iPhone — remains pending.^{[Al Jazeera]}

For investors tracking the memory chip supply chain and consumer electronics pricing, the key data points to follow: consumer response to Apple's Mac and iPad increases, Xbox sell-through once the August hikes kick in, and how AI-driven demand continues to shape DRAM and NAND pricing trends.

This content is for informational purposes only and does not constitute investment advice, trading advice, or any guarantee of returns.