Technology giants Apple (AAPL) and Microsoft (MSFT) have each announced that they are raising prices on their electronic devices due to rising costs for memory chips.
Apple announced an immediate increase in prices for its MacBook computers and iPad tablets, citing a memory chip shortage caused by the artificial intelligence (A.I.) boom.
The new entry-level MacBook Neo will now cost $699 U.S., up from $599 U.S. previously. The 512 gigabyte MacBook Air now costs $1,299 U.S., up from $1,099 U.S.
Additionally, the one terabyte MacBook Pro is seeing its price increase to $1,999 U.S., up from $1,699 U.S.
The 128-gigabyte iPad Air now costs $749 U.S., up from $599 U.S., while the 256-gigabyte iPad Pro Wifi costs $1,199 U.S., up from $999 U.S.
Analysts also expect Apple to raise the price of its new iPhone 18 when the smartphone is released this September.
At the same time, Microsoft said that it is increasing the price of its Xbox video game console by up to $150 U.S.
Like Apple, Microsoft cited a ?global components crisis that has sent storage ?and memory costs soaring across the consumer electronics industry.
Effective August 1, ?the price of Xbox ?consoles will increase by $100 U.S. for 512 GB models and $150 U.S. for 1 TB models. Microsoft said that it is ?discontinuing its 2 TB Xbox model.
The latest price increases come after Microsoft raised prices on its Xbox console twice last year as it also struggles with tariff-induced cost pressures.
“Unfortunately, console storage and memory prices have increased by more than 2.5 times and we expect another doubling by the fall of 2027,” said Microsoft in a news release.
AAPL stock fell 6% on news of its price increases. However, the company’s share price has risen 37% over the last 12 months to trade at $275.15 U.S. per share.
MSFT stock fell 4% after it announced the Xbox price hikes. The company’s shares have fallen 29% in the last year to trade at $352.83 U.S.
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