Apple Inc. took the rare step of raising retail prices globally for its Mac, iPad, home device, and Vision Pro lineups on Thursday. The decision is a direct response to rising component costs triggered by an unprecedented global shortage of memory chips and storage.
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According to an Apple spokesperson, the crisis stems from the rapid expansion of artificial intelligence data centres, which has created an extraordinary surge in demand for memory and storage. The company noted that it has never seen component prices increase so significantly or so rapidly. While Apple managed to shield consumers from these spikes initially, executives stated they have reached a breaking point where passing costs on to the consumer became unavoidable.
The price increases have been applied broadly across Apple’s computer and tablet portfolios, as reflected on its online retail store:
- Laptops: The starting price of the new MacBook Neo has risen to $699 (up from $599), while its higher-end storage configuration with Touch ID moves to $799. The 13-inch MacBook Air now starts at $1,299 (up from $1,099), and the 15-inch model has increased to $1,499. Meanwhile, the entry-level 14-inch MacBook Pro jumped to $1,999, the 16-inch model shifted to $2,999, and a fully-loaded 16-inch MacBook Pro configuration maxes out at a staggering $9,999.
- Desktops: The iMac now begins at $1,499, and the Mac Studio has climbed to $2,499. The higher-end M4 Pro configuration of the Mac mini has risen to $1,599; this follows a prior baseline adjustment where Apple eliminated the mini’s cheapest entry-level tier, effectively bumping the base model price from $599 to $799.
- iPads: Tablet pricing has scaled up across the board. The base iPad now costs $449, and the iPad mini has moved to $599. The iPad Air lineup increased to $749 (11-inch) and $949 (13-inch), while the premium iPad Pro tier has shifted to $1,199 for the 11-inch model and $1,499 for the 13-inch model.
The price adjustments also extended into Apple’s smart home and spatial computing sectors. The HomePod mini has increased to $129, while the standard HomePod speaker moved to $349. The Apple TV set-top box saw a significant percentage jump, moving from $129 to $199. Finally, the Apple Vision Pro headset now starts at $3,699 for its base model, with the 1-terabyte variant climbing to $4,199.
Notably, Apple chose to leave pricing for the iPhone, Apple Watch, and AirPods unchanged during this round of hikes.
This hardware crisis is not entirely unexpected. During an April earnings call, Apple executives warned Wall Street that memory shortages would worsen throughout the year. Outgoing CEO Tim Cook stated at the time that the crunch was severely limiting supply, leading to shipping delays for various Macs. Cook noted that the iPhone has been less affected by memory constraints, facing chip-related issues on its main processors instead.
The ongoing shortage has disrupted Apple’s product roadmap, reportedly delaying highly anticipated releases like an updated Mac Studio. John Ternus, Apple’s current head of hardware engineering, is scheduled to inherit this supply chain crisis when he officially succeeds Cook as CEO on September 1. Despite the component volatility, Apple remains on track to launch its next-generation smartphones this September, which will include a highly anticipated foldable model expected to retail above $2,000.
