Apple hikes Mac and iPad prices as AI memory crunch bites

Apple has increased the prices of several Mac, iPad and home entertainment products, saying it can no longer absorb soaring memory and storage chip costs driven by the rapid expansion of artificial intelligence data centres.

The price rises, which took effect immediately, affect a range of Macs, iPads, Apple TV and HomePod devices, but leave the iPhone, Apple Watch and AirPods unchanged.

Among the biggest changes, the entry-level MacBook Neo has risen from US$599 (about A$920) to US$699 (about A$1,075), while the MacBook Air with 512GB of storage has increased from US$1,099 (about A$1,690) to US$1,299 (about A$2,000). The MacBook Pro with 1TB of storage has climbed from US$1,699 (about A$2,615) to US$1,999 (about A$3,075).

The iPad Air with 128GB of storage has also increased from US$599 (about A$920) to US$749 (about A$1,150), while Apple has also raised prices for its Apple TV streaming box and HomePod smart speakers.

Apple said unprecedented demand for memory chips used in AI infrastructure has created severe supply shortages, forcing even one of the world's largest technology companies to pass higher costs on to customers.

"We have never seen a component price increase this much, this quickly," Apple said in a statement.

"We have shielded our customers from these increases so far, but we have now reached a point where we need to begin raising prices on a number of products."

Memory manufacturers including Micron, Samsung and SK Hynix have increasingly prioritised supplying AI hardware companies such as Nvidia, leaving less capacity for consumer electronics makers.

According to market research firm TrendForce, prices for DRAM memory chips rose by as much as 98 per cent during the first quarter of 2026 and are forecast to jump by another 58 to 63 per cent this quarter.

The shortage has been dubbed "RAMageddon" by industry observers as AI infrastructure projects consume ever-growing volumes of high-performance memory.